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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
Income Taxes NOTE 10 - INCOME TAXES

The components of the provision for federal income taxes are as follows:

Years Ended December 31,

2023

2022

(In Thousands)

Current

$

3,804

$

6,733

Deferred

583

419

$

4,387

$

7,152

Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items, such as the allowance for credit losses and loan fees are recognized in different periods for financial reporting and tax return purposes. As of December 31, 2023, the Company had a $3,176,000 net operating loss carryforward that will begin to expire by December 31, 2035. A valuation allowance has not been established for deferred tax assets. Realization of the deferred tax assets is dependent on generating sufficient taxable income. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. Deferred tax assets are recorded in other assets.

Income tax expense of the Company is less than the amounts computed by applying statutory federal income tax rates to income before income taxes because of the following:

Percentage of Income

Before Income Taxes

Years Ended December 31,

2023

2022

Tax at statutory rates

21.0

%

21.0

%

Tax exempt interest income, net of interest expense disallowance

(2.0)

(1.6)

Earnings and proceeds on life insurance

(0.7)

(0.6)

Other

2.4

0.9

20.7

%

19.7

%

The net deferred tax asset included in other assets in the accompanying Consolidated Balance Sheets includes the following amounts of deferred tax assets and liabilities:

2023

2022

(In Thousands)

Deferred tax assets:

Allowance for credit losses

$

4,447

$

3,985

Deferred compensation

867

834

Core deposit intangible

175

204

Pension liability

282

267

Foreclosed real estate valuation allowance

—

19

Net operating loss carryforward

745

829

Purchase price adjustment

1,278

1,779

Net unrealized loss on securities

12,717

15,399

Other

3,447

2,838

Total Deferred Tax Assets

23,958

26,154

Deferred tax liabilities:

Premises and equipment

1,047

1,085

Deferred loan fees

1,427

1,366

Net unrealized gain on pension liability

131

154

Total Deferred Tax Liabilities

2,605

2,605

Net Deferred Tax Asset

$

21,353

$

23,549

The Company’s federal and state income tax returns for taxable years through 2020 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue.