XML 37 R20.htm IDEA: XBRL DOCUMENT v3.24.1
Note 11 - Income Taxes
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 11. Income Taxes

 

The Company is subject to U.S. federal and Virginia income tax as well as bank franchise tax in the state of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2020.

 

Net deferred tax assets consisted of the following components at December 31, 2023 and 2022 (in thousands):

 

  

2023

  

2022

 

Deferred Tax Assets

        

Allowance for credit losses

 $2,624  $1,564 

Acquisition accounting adjustments, net

  420   570 

Post-retirement benefits

  214   188 

Core deposit intangible

  232   270 

Unvested stock-based compensation

  87   81 

Reserve for letter of credit losses

  44   88 

Limited partnership investments

  39   39 

Lease liability

  69   113 

Unrealized loss on securities available for sale

  5,495   6,536 

NOL carryover - acquired from Fincastle

  1,337   1,434 

Loan origination fees, net

  241   176 
  $10,802  $11,059 

Deferred Tax Liabilities

        

Depreciation

 $638  $701 

Right of use asset

  69   112 

Other real estate owned

  —   29 

Cash flow hedges

  523   563 
  $1,230  $1,405 

Net deferred tax assets

 $9,572  $9,654 

 

The income tax expense for the years ended December 31, 2023 and 2022 consisted of the following (in thousands):

 

  

2023

  

2022

 

Current tax expense

 $2,580  $4,193 

Deferred tax expense (benefit)

  (399)  (241)
  $2,181  $3,952 

 

The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2023 and 2022, due to the following (in thousands):

 

  

2023

  

2022

 

Computed tax expense at statutory federal rate

 $2,479  $4,357 

Increase in income taxes resulting from:

        

Other

  29   8 

Decrease in income taxes resulting from:

        

Tax-exempt interest and dividend income

  (156)  (252)

Income from bank owned life insurance

  (171)  (161)
  $2,181  $3,952