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Income Taxes
 12 Months Ended
Dec. 31, 2024
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,

2024

2023

(In Thousands)

Current

$

27

$

3,804

Deferred

(125)

583

$

(98)

$

4,387

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, 2024, the Company had a $3,176,000 net operating loss carryforward that will begin to expire by December 31, 2035. As of December 31, 2024, the Company had a $1,125,000 net operating loss carryforward that has no expiration date. 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,

2024

2023

Tax at statutory rates

21.0

%

21.0

%

Tax exempt interest income, net of interest expense disallowance

157.0

(2.0)

Earnings and proceeds on life insurance

86.0

(0.7)

State tax expense

(193.5)

2.4

Other

(32.5)

—

38.0

%

20.7

%

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:

2024

2023

(In Thousands)

Deferred tax assets:

Allowance for credit losses

$

4,751

$

4,447

Deferred compensation

860

867

Core deposit intangible

145

175

Pension liability

292

282

Net operating loss carryforward

745

745

Current year net operating loss carry forward

1,125

—

Purchase price adjustment

954

1,278

Net unrealized loss on securities

8,913

12,717

Other

2,966

3,447

Total Deferred Tax Assets

20,751

23,958

Deferred tax liabilities:

Premises and equipment

1,451

1,047

Deferred loan fees

1,495

1,427

Net unrealized gain on pension liability

109

131

Total Deferred Tax Liabilities

3,055

2,605

Net Deferred Tax Asset

$

17,696

$

21,353

The Company’s federal and state income tax returns for taxable years through 2021 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue.