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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Income Taxes

Note 14: Income Taxes

 

The provision for income taxes includes these components:

 

   For The Year Ended
December 31,		 
($ in thousands)  2024   2023 
Taxes currently payable  $369   $744 
Deferred provision   2,017    1,878 
Income tax expense  $2,386   $2,622 

 

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

 

   For The Year Ended
December 31,		 
($ in thousands)  2024   2023 
Computed at the statutory rate (21%)  $2,910   $3,091 
Increase (decrease) resulting from          
Tax exempt interest   (135)   (117)
BOLI income   (160)   (187)
Sec. 831(b) election   (147)   (198)
Other   (82)   33 
Actual tax expense  $2,386   $2,622 

 

The tax effects of temporary differences related to deferred taxes shown on the balance sheets are: 

 

   For The Year Ended
December 31,		 
   2024   2023 
($ in thousands)        
Deferred tax assets        
Allowance for credit losses  $3,170   $3,315 
Unrealized losses on available-for-sale securities   8,037    7,929 
Capitalized research and development costs   102    90 
Accrued bonus   120    124 
Net operating loss   791    2,758 
Other   911    819 
    13,131    15,035 
Deferred tax liabilities          
Depreciation   (849)   (983)
Mortgage servicing rights   (3,122)   (2,920)
Purchase accounting adjustments   (1,475)   (1,488)
Prepaids   (434)   (475)
Net deferred loan costs   (31)   (93)
Section 475 MTM   (8,037)   (7,929)
FHLB stock dividends   (67)   (122)
    (14,015)   (14,010)
Net deferred tax (liability) asset  $(884)  $1,025 

 

At December 31, 2024, and 2023, the Company had $3.8 million and $13.1 million, respectively, in net operating losses. No valuation allowance was recorded as these are expected to be fully utilized and have no expiration.