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

The Company files income tax returns in the U.S. federal jurisdiction and 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 2021.

Income tax expense attributable to income before income tax expense is summarized as follows (dollars in thousands):

December 31,

2024

2023

Current income tax expense

$

1,951

$

1,931

Deferred income tax expense (benefit)

28

(356)

Income tax expense

$

1,979

$

1,575

Income tax expense differed from amounts computed by applying the U.S. Federal income tax rate of 21% to income before income tax expense as a result of the following:

2024

2023

Computed “expected” income tax expense

$

2,084

$

2,159

Increase (reduction) in income tax resulting from:

State income taxes

101

36

Tax-exempt income

(264)

(240)

Non-deductible expenses

83

21

Valuation allowances

—

(389)

Other

(25)

(12)

Income tax expense

$

1,979

$

1,575


‎

Note 12 - Income taxes (continued)

The tax effects of temporary differences result in deferred tax assets and liabilities as presented below (dollars in thousands):

December 31,

2024

2023

Deferred tax assets

Lease liabilities

$

825

$

885

Allowance for credit losses

1,479

1,557

Unfunded commitment liability

114

137

Unrealized losses on available-for-sale securities

6,091

5,746

Non-accrual interest

36

51

Net operating losses

283

339

Deferred compensation

1,117

953

Other

—

36

Gross deferred tax assets

9,945

9,704

Deferred tax liabilities

Right-of-use assets

729

794

Depreciation

173

230

Intangibles

86

—

Other

103

143

Gross deferred tax liabilities

1,091

1,167

Net deferred tax asset

$

8,854

$

8,537