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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 15 – Income Taxes

The components of income tax expense were as follows:

                 
     
   For the years ended December 31, 
(dollars in thousands)  2024   2023   2022 
Current income taxes:               
Federal   $4,992    3,769    8,482 
State    623    460    1,273 
Total current tax expense    5,615    4,229    9,755 
Deferred income benefit   (1,233)   (228)   (757)
Income tax expense  $4,382    4,001    8,998 

The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate:

                 
     
   For the years ended December 31, 
(dollars in thousands)  2024   2023   2022 
Tax expense at statutory rate  $4,182    3,660    8,004 
Effect of state income taxes, net of federal benefit    195    364    1,006 
Exempt income    13    7    (27)
Effect of stock-based compensation   128    133    42 
Other   (136)   (163)   (27)
Income tax expense   $4,382    4,001    8,998 

The components of the deferred tax assets and liabilities are as follows:

           
     
   December 31, 
(dollars in thousands)  2024   2023 
Deferred tax assets:          
Allowance for credit losses  $8,636    8,543 
Reserve for unfunded commitments   315    384 
Unrealized loss on securities available for sale   3,050    3,015 
Net deferred loan fees   1,343    1,475 
Deferred compensation   1,557    1,458 
Accrued bonuses   687    - 
Lease liabilities   4,999    5,175 
Other   608    479 
Total deferred tax assets   21,195    20,529 
Deferred tax liabilities:          
Property and equipment   2,892    3,334 
Hedging transactions   79    74 
Prepaid expenses   302    255 
ROU assets   4,435    4,656 
Other   20    10 
Total deferred tax assets   7,728    8,329 
Net deferred tax asset  $13,467    12,200 

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions.