XML 201 R26.htm IDEA: XBRL DOCUMENT v3.25.1

Income taxes

12 Months Ended

Dec. 31, 2024

Income taxes

Income taxes

19. Income taxes:

The current and deferred amounts of the provision for income taxes expense for each of the years ended December 31, 2024, 2023 and 2022 are summarized as follows:

​

​	​	​	​	​	​	​	​	​	​	​
(Dollars in thousands)		2024			2023			2022
Current tax provision	​	​	​	​	​	​	​	​	​	​
Federal	​	$	3,299	​	$	3,853	​	$	6,665	​
State	​	​	320	​	​	​	​	​	​	​
Total current tax provision	​	​	3,619	​	​	3,853	​	​	6,665	​
Deferred tax (benefit) provision	​	​	​	​	​	​	​	​	​	​
Federal	​	​	(3,449)	​	​	1,268	​	​	611	​
State	​	​	(200)	​	​	​	​	​	​	​
Total deferred tax (benefit) provision	​		(3,649)	​	​	1,268	​	​	611	​
Total income tax (benefit) expense	​	$	(30)	​	$	5,121	​	$	7,276	​

​

The components of the net deferred tax asset at December 31, 2024 and 2023 are summarized as follows:

​

​	​	​	​	​	​	​	​
(Dollars in thousands)		2024			2023
Deferred tax assets:	​	​	​	​	​	​	​
Allowance for credit losses	​	$	9,217	​	$	4,789	​
Lease liability	​	​	2,774	​	​	2,397	​
Defined benefit plan	​		1,280	​		1,635	​
Deferred compensation	​		1,046	​		694	​
Investment securities available for sale	​	​	10,681	​	​	11,270	​
Purchase accounting	​	​	9,084	​	​	​	​
Built-in loss carryforward	​	​	7,331	​	​	​	​
Other	​		1,285	​		339	​
Total	​		42,698	​		21,124	​
Deferred tax liabilities:	​	​	​	​	​	​	​
Lease right-of-use assets	​	​	2,684	​	​	2,313	​
Premises and equipment, net	​		1,974	​		2,109	​
Purchase accounting	​		​	​	​	474	​
Deferred loan costs	​	​	467	​	​	92	​
Accrued compensation	​		803	​		1,912	​
Other	​		1,082	​		454	​
Total	​		7,010	​		7,354	​
Net deferred tax asset	​	$	35,688	​	$	13,770	​

​

The acquisition of FNCB triggered a change in ownership, as defined under Internal Revenue Code (IRC) Section 382. As a result, the Company determined that at the date of the ownership change, it had a net unrealized built-in loss (“NUBIL”). Under IRC Section 382, the Company’s net built-in losses that existed prior to the ownership change are limited in their utilization based on the fair market value of the Company’s assets at the time of the change and the applicable federal long-term tax-exempt rate. Due to the limitation, the Company has reassessed its deferred tax assets and liabilities, including the realizability of any built-in losses. The impact of these limitations has been reflected in the Company’s tax provision for the period. As of December 31, 2024, the Company is limited to an approximate $4.8 million annual limitation on its ability to utilize its built-in losses and has built-in loss carryforward of approximately $33.6 million that do not expire and can be utilized to offset future taxable income. Based on the Company’s projections of future taxable income, it is more likely than not the Company will fully utilize these carryforwards in the future years.

A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 21.0 percent for the years ended December 31, 2024, December 31, 2023 and December 31, 2022 is summarized as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

​

​

2023

​

​

​

2022

​

(Dollars in thousands, except percents)

Amount

%

​

Amount

%

​

Amount

​

%

Provision for income tax at statutory rate

​

$

1,778

​

21.00

%

​

$

6,825

​

21.00

%

​

$

9,527

​

21.00

%

Increase (decrease) resulting from:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

State tax, net of federal benefit

​

​

95

​

1.16

​

​

​

397

​

1.22

​

​

​

216

​

0.63

​

Tax exempt interest

​

(1,237)

​

(14.61)

​

​

(1,057)

​

(3.25)

​

​

(1,400)

​

(3.09)

​

Bank owned life insurance income

​

(360)

​

(4.25)

​

​

(221)

​

(0.68)

​

​

(205)

​

(0.45)

​

Residential housing program tax credits

​

(631)

​

(7.45)

​

​

​

(755)

​

(2.32)

​

​

​

(911)

​

(2.01)

​

Nondeductible transaction costs

​

​

206

​

2.43

​

​

179

​

0.55

​

​

​

​

​

​

Other, net

​

119

​

1.36

​

​

(247)

​

(0.76)

​

​

49

​

(0.04)

​

Total

​

$

(30)

​

(0.36)

%

​

$

5,121

​

15.76

%

​

$

7,276

​

16.04

%

​

The Company computes deferred income taxes under the asset and liability method. Deferred incomes taxes are recognized for tax consequences of “temporary differences” by applying enacted statutory tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions subject to reduction of the asset by a valuation allowance.

The Company follows FASB ASC Topic 740 “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes. The Company did not recognize or accrue any interest or penalties related to income taxes during the years ended December 31, 2024, 2023 and 2022. The Company does not have an accrual for uncertain tax positions as of December 31, 2024, 2023 or 2022, as deductions taken or benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2021 and thereafter are subject to examination by tax authorities.

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Name:	us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration