v3.26.1
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Schedule of Components of Income Tax Expense

Income tax expense for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):

 

    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2026   2025   2026   2025
    $   $   $   $
Current:                                
Federal     704       1,101       778       2,022  
State     130       4       135       4  
Total current     834       1,105       913       2,026  
Deferred tax expense:                                
Federal     578       275       1,488       336  
State     (77 )     —       (44 )     —  
Total deferred     501       275       1,444       336  
Income tax expense     1,335       1,380       2,357       2,362  
Schedule of Net Deferred Tax Assets and Liabilities

Components of the Corporation’s net deferred tax position at June 30, 2026 and December 31, 2025 are as follows (in thousands):

 

    2026   2025
    $   $
         
Deferred tax assets:                
Allowance for credit losses     4,043       3,546  
Allowance for off-balance sheet extensions of credit     190       284  
Interest on nonaccrual loans     241       189  
Purchase accounting - loans     1,103       —  
Operating lease liability     589       524  
Net operating loss carryforwards     13,078       —  
Net unrealized losses on securities available for sale     6,069       5,823  
Net unrealized losses on derivatives     —       62  
Other     90       53  
Total deferred tax assets     25,403       10,481  
                 
Deferred tax liabilities:                
Premises and equipment     (2,087 )     (2,104 )
Right of use asset     (579 )     (516 )
Mortgage servicing rights     (779 )     (671 )
Discount on investment securities     (1,755 )     (1,326 )
Purchase accounting - core deposit intangible     (569 )     —  
Purchase accounting - time deposits     (38 )     —  
Net unrealized gains on derivatives     (548 )     —  
Other     (12 )     (20 )
Total deferred tax liabilities     (6,367 )     (4,637 )
Net deferred tax assets before valuation allowance     19,036       5,844  
Valuation allowance     (7,028 )     —  
Net deferred tax assets     12,008       5,844