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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to income from operations consisted of the following:

 

 Schedule of Components of Income Tax Expense (Benefit)

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Current:               
Federal  $1,711   $559   $3,039 
State   (161)   (317)   967 
Total current   1,550    242    4,006 
Deferred:               
Federal   295    994    662 
State   56    238    196 
Total deferred   351    1,232    858 
Deferred tax valuation allowance   53    (42)   (50)
Income tax expense  $1,954   $1,432   $4,814 
Schedule of Effective Income Tax Rate Reconciliation

The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the statutory federal income tax rate were as follows:

 

 Schedule of Effective Income Tax Rate Reconciliation

   2023   2022   2021 
(Dollars in thousands)  Years ended December 31, 
   2023   2022   2021 
Computed “expected” tax expense  $2,980   $2,375   $4,793 
(Reduction) increase in income taxes resulting from:               
Tax-exempt interest income, net   (592)   (633)   (645)
Excess tax expense (benefit) from stock option exercise   2    (4)   (29)
Bank owned life insurance   (208)   (180)   (156)
Reversal of unrecognized tax benefits, net   (517)   (465)   162 
State income taxes, net of federal benefit   476    369    718 
Investment tax credits   (47)   (23)   (19)
Other, net   (140)   (7)   (10)
Income tax (benefit) expense  $1,954   $1,432   $4,814 
Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows:

 

Schedule of Deferred Tax Assets and Liabilities 

   2023   2022 
(Dollars in thousands)  As of December 31, 
   2023   2022 
Deferred tax assets:          
Unrealized loss on investment securities available-for-sale  $5,371   $8,132 
Loans, including allowance for credit losses   2,949    2,879 
State taxes   536    562 
Other, net   244    210 
Investments   -    184 
Net operating loss carry forwards   332    181 
Acquisition costs   99    120 
Net deferred loan fees   144    78 
Valuation allowance on other real estate   75    74 
Deferred compensation arrangements   62    62 
Total deferred tax assets   9,812    12,482 
Less valuation allowance   (234)   (181)
Total deferred tax assets, net of valuation allowance   9,578    12,301 
           
Deferred tax liabilities:          
Intangible assets   1,277    1,324 
Mortgage servicing rights   681    801 
Prepaid expenses   586    554 
Premises and equipment, net of depreciation   618    241 
Investments   158    - 
FHLB stock dividends   59    17 
Unrealized gain on investment securities available-for-sale   -    - 
Total deferred tax liabilities   3,379    2,937 
           
Net deferred tax asset  $6,199   $9,364 
Schedule of Unrecognized Tax Benefits

The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows:

 

 Schedule of Unrecognized Tax Benefits

         
(Dollars in thousands)  Years ended December 31, 
   2023   2022 
Unrecognized tax benefits at beginning of year  $2,157   $2,290 
Gross increases to current year tax positions   472    390 
Gross decreases to prior year’s tax positions   (61)   (61)
Lapse of statute of limitations   (528)   (462)
Unrecognized tax benefits at end of year  $2,040   $2,157