v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Income Tax Expense (Benefit)
The components of income tax expense (benefit) from continuing operations consisted of the following:
 
   
2025
   
2024
 
   
(In thousands)
 
Current
           
Federal
 
$
118
   
$
505
 
State
    270      
504
 
    Foreign
           
Deferred
               
Federal
   
(245
)
   
12
 
State
   
195
     
(206
)
    Foreign
           
Total
 
$
338
   
$
815
 
Income Taxes Paid, Net of Refunds Received

Income taxes paid, net of refunds received was as follows:


   
2025
     
2024
 
 

(In thousands)
 
                 
Federal
 
$
   
$
150
 
California
   
215
     
200
 
Washington, D.C.
   
110
     
66
 
  Total
 
$
325
   
$
416
 
Effective Income Tax Rate Reconciliation
Effective tax rates differ from the federal statutory rate of 21% applied to income before income taxes due to the following:
 
   
2025
   
2024
 
   
(In thousands)
    (In thousands)  
U. S. Federal statutory income tax
 
$
(5,139
)
    21.00 %  
$
581
      21.00 %
State and local taxes, net of federal benefit*
    367       (1.50 )%     211       7.62 %
Nontaxable or nondeductible items
                               
Earnings from bank owned life insurance
   
(72
)
    0.29 %    
(10
)
    (0.36 )%
Tax-exempt interest, net of TEFRA disallowance
   
(7
)
    0.03 %    
(5
)
    (0.18 )%
Goodwill impairment
    5,430
      (22.19 )%           0.00 %
Stock-based compensation
    7       (0.03 )%     38       1.37 %
Other, net
   
(248
)
    1.02 %    
      0.00 %
Effective tax rate
 
$
338
      (1.38 )%  
$
815
      29.43 %

*
State and local taxes in California and Washington, D.C. made up the majority (greater than 50 percent) of the tax effect in this category.
Deferred Tax Assets and Liabilities
Year‑end deferred tax assets and liabilities were due to the following:
 
   
2025
   
2024
 
   
(In thousands)
 
Deferred tax assets:
           
Allowance for credit losses
 
$
2,658
   
$
2,408
 
Accrued liabilities
   
851
     
483
 
State income taxes
   
56
     
108
 
Stock compensation
   
239
     
196
 
Tax loss carryforwards
   
1,900
     
1,880
 
Partnership investment
   
252
     
292
 
General business credit
   
1,007
     
1,544
 
Net unrealized loss on securities available-for-sale
    2,403       4,864  
Lease liability
    424       127  
Fair value adjustment on acquired loans
    27       100  
Other
   
316
     
166
 
Total deferred tax assets
   
10,133
     
12,168
 
Less: valuation allowance
    (449 )     (449 )
Total deferred tax assets, net of valuation allowance
    9,684       11,719  
Deferred tax liabilities:
               
Deferred loan fees/costs
   
(1,152
)
   
(1,273
)
Basis difference on fixed assets
   
(726
)
   
(708
)
FHLB stock dividends
   
(1
)
   
(54
)
Prepaid expenses
   
(261
)
   
(172
)
Right of use assets
    (421 )     (121 )
Core deposit intangibles
    (412 )     (511 )
Total deferred tax liabilities
   
(2,973
)
   
(2,839
)
Net deferred tax assets
 
$
6,711
   
$
8,880