XML 38 R20.htm IDEA: XBRL DOCUMENT
v3.24.1

Income Taxes (Benefit) | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes (Benefit) | Income Taxes (Benefit) The composition of income tax (benefit) for the years ended December 31, 2023, 2022, and 2021 was as follows:
(in thousands) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 793 |  |  | $ | 4,591 |  |  | $ | 5,351 |
State | 67 |  |  | (134) |  |  | 630 |
Total current | 860 |  |  | 4,457 |  |  | 5,981 |
Deferred: |  |  |  |  |
Federal | (1,384) |  |  | (119) |  |  | (284) |
State | — |  |  | — |  |  | — |
Total deferred | (1,384) |  |  | (119) |  |  | (284) |
Total income tax (benefit) | $ | (524) |  |  | $ | 4,338 |  |  | $ | 5,697 |
Applicable income tax expense (benefit) for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2023, 2022, and 2021 are as follows:
| 2023 |  | 2022 |  | 2021
(in thousands) | Amount |  | % |  | Amount |  | % |  | Amount |  | %
Income before provision for income tax (benefit) | $ | 432 |  |  |  |  | $ | 25,089 |  |  |  |  | $ | 28,214 |  |  |
Tax at statutory federal income tax rate | $ | 91 |  |  | 21.00 | % |  | $ | 5,269 |  |  | 21.00 | % |  | $ | 5,925 |  |  | 21.00 | %
Tax-exempt income, net | (509) |  |  | (117.88) |  |  | (821) |  |  | (3.27) |  |  | (733) |  |  | (2.60) |
State income tax (benefit), net of federal tax benefit | 53 |  |  | 12.25 |  |  | (106) |  |  | (0.42) |  |  | 498 |  |  | 1.76 |
Other, net | (159) |  |  | (36.86) |  |  | (4) |  |  | (0.02) |  |  | 7 |  |  | 0.03 |
Provision for income tax expense (benefit) | $ | (524) |  |  | (121.49) | % |  | $ | 4,338 |  |  | 17.29 | % |  | $ | 5,697 |  |  | 20.19 | %
Income tax (benefit) expense as a percentage of earnings before income taxes (benefit) as reported in the consolidated financial statements was (121.5)% for the year ended December 31, 2023 compared to 17.3% and 20.2% for the years ended December 31, 2022 and 2021, respectively. The effective tax rate for each of the years ended December 31, 2023, 2022, and 2021, respectively, is lower than the U.S. federal statutory rate of 21% primarily due to tax-free revenues. Included in the effective tax rate is a $0.1 million benefit associated with a historic tax credit investment for each of the years ended December 31, 2023 and 2022. The investment is expected to generate a $0.3 million tax benefit over the life of the project and is being recognized under the deferral method of accounting. The components of deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 were as follows:
(in thousands) | 2023 |  | 2022
Deferred tax assets: |  |  |
Allowance for credit losses | $ | 4,669 |  |  | $ | 3,267 |
Securities | 5,653 |  |  | 9,714 |
Liability for Unfunded Commitments | 199 |  |  | — |
Other real estate owned | 1,250 |  |  | 559 |
Deferred loan fees | 437 |  |  | 462 |
Lease liability | 255 |  |  | 322 |
Accrued / deferred compensation | 835 |  |  | 668 |
Other | 393 |  |  | 438 |
Total deferred tax assets | $ | 13,691 |  |  | $ | 15,430 |
Deferred tax liabilities: |  |  |
Premises and equipment | $ | 319 |  |  | $ | 427 |
Mortgage servicing rights | 365 |  |  | 609 |
Deferred loan costs | 444 |  |  | 422 |
Pension | 1,180 |  |  | 378 |
Right-of-use asset | 246 |  |  | 313 |
Prepaid expenses | 187 |  |  | 456 |
Other | 38 |  |  | 9 |
Total deferred tax liabilities | 2,779 |  |  | 2,614 |
Net deferred tax assets | $ | 10,912 |  |  | $ | 12,816 |
The deferred tax asset associated with the unrealized losses on securities is mainly a result of changes in interest rates, and the unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. The issuers of the securities are of high credit quality and all principal amounts are expected to be paid when the securities mature. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning initiatives in making this assessment. In management's opinion, the Company will more likely than not realize the benefits of its deferred tax assets and, therefore, has not established a valuation allowance against its deferred tax assets as of December 31, 2023. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income of the appropriate character over the periods in which the deferred tax assets are deductible. The Company follows ASC Topic 740, Income Taxes, which addresses the accounting for uncertain tax positions. For each of the years ended December 31, 2023 and 2022, the Company did not have any uncertain tax provisions, and did not record any related tax liabilities.

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 taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: 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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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