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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
10.
INCOME TAXES

The consolidated provisions for income taxes for the years ended December 31, 2024 and 2023 were as follows:

 

 

 

2024

 

 

2023

 

 

 

(Dollars in Thousands)

 

Federal

 

 

 

 

 

 

Current

 

$

1,458

 

 

$

2,121

 

Deferred

 

 

538

 

 

 

70

 

Total federal

 

 

1,996

 

 

 

2,191

 

State

 

 

 

 

 

 

Current

 

 

543

 

 

 

532

 

Deferred

 

 

45

 

 

 

63

 

Total state

 

 

588

 

 

 

595

 

Total

 

$

2,584

 

 

$

2,786

 

 

The consolidated tax expense differed from the amount computed by applying the Company’s federal statutory income tax rate of 21.0% in 2024 and 2023 as described in the following table:

 

 

 

2024

 

 

2023

 

 

 

(Dollars in Thousands)

 

Income tax expense at federal statutory rate

 

$

2,258

 

 

$

2,368

 

Increase (decrease) resulting from:

 

 

 

 

 

 

Tax-exempt interest

 

 

(52

)

 

 

(55

)

Bank-owned life insurance

 

 

(74

)

 

 

(64

)

State income tax expense, net of federal income taxes

 

 

414

 

 

 

406

 

Apportionment and state rate changes

 

 

119

 

 

 

13

 

Other

 

 

(81

)

 

 

118

 

Total

 

$

2,584

 

 

$

2,786

 

 

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 are presented below:

 

 

 

2024

 

 

2023

 

 

 

(Dollars in Thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

2,657

 

 

$

2,719

 

Deferred compensation

 

 

749

 

 

 

817

 

Deferred commissions and fees

 

 

368

 

 

 

372

 

Unrealized loss on securities available-for-sale

 

 

1,676

 

 

 

2,332

 

Other

 

 

554

 

 

 

1,000

 

Total gross deferred tax assets

 

 

6,004

 

 

 

7,240

 

Deferred tax liabilities:

 

 

 

 

 

 

Premises and equipment

 

 

1,329

 

 

 

1,284

 

Core deposit intangible

 

 

12

 

 

 

42

 

Limited partnerships

 

 

112

 

 

 

96

 

Unrealized gain on cash flow hedges

 

 

227

 

 

 

188

 

Other

 

 

260

 

 

 

288

 

Total gross deferred tax liabilities

 

 

1,940

 

 

 

1,898

 

Net deferred tax asset, included in other assets

 

$

4,064

 

 

$

5,342

 

 

The Company did not have any federal or state net operating loss carryforwards as of December 31, 2024 or December 31, 2023. The Company files income tax returns with the federal government and several states. The majority of its income is attributable to the states of Alabama and Tennessee. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and the states in which it filed for the years ended December 31, 2021 through 2024.

As of December 31, 2024, the Company had no unrecognized tax benefits related to federal or state income tax matters and does not anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to December 31, 2024. As of December 31, 2024, the Company had accrued no interest and no penalties related to uncertain tax positions.