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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
INCOME TAXES  
INCOME TAXES

15. INCOME TAXES

The expense for income taxes is summarized below and includes both federal and applicable state corporate income taxes:

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YEAR ENDED DECEMBER 31, 

​

    

2024

    

2023

​

​

(IN THOUSANDS)

Current

​

$

832

​

$

(477)

Deferred

​

 

(34)

​

 

(565)

Income tax expense (benefit)

​

$

798

​

$

(1,042)

​

The reconciliation between the federal statutory tax rate and the Company’s effective consolidated income tax rate is as follows:

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YEAR ENDED DECEMBER 31, 

​

​

2024

​

2023

​

​

    

AMOUNT

    

RATE

    

AMOUNT

    

RATE

    

​

​

(IN THOUSANDS, EXCEPT PERCENTAGES)

Income tax expense (benefit) based on federal statutory rate

​

$

924

 

21.0

%  

$

(921)

 

21.0

%  

Tax exempt income

​

 

(247)

 

(5.6)

​

 

(237)

 

5.4

​

Other

​

 

121

 

2.7

​

 

116

 

(2.7)

​

Total expense (benefit) for income taxes

​

$

798

 

18.1

%  

$

(1,042)

 

23.7

%  

​

The following table highlights the major components comprising the deferred tax assets and liabilities for each of the periods presented:

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AT DECEMBER 31, 

​

    

2024

    

2023

​

​

(IN THOUSANDS)

DEFERRED TAX ASSETS:

​

  

​

​

  

​

Allowance for credit losses - loans

​

$

2,922

​

$

3,161

Allowance for credit losses - securities

​

 

94

​

 

202

Allowance for credit losses - unfunded commitments

​

 

203

​

 

197

Unrealized investment security losses

​

 

3,544

​

 

3,650

Premises and equipment

​

 

912

​

 

678

Lease liabilities

​

​

895

​

​

705

Net operating loss

​

 

469

​

 

—

Interest rate hedges

​

 

36

​

 

94

Other

​

 

173

​

 

169

Total tax assets

​

 

9,248

​

 

8,856

DEFERRED TAX LIABILITIES:

​

 

​

​

 

​

Investment accretion

​

 

(129)

​

 

(95)

Lease right-of-use assets

​

​

(815)

​

​

(636)

Accrued pension obligation

​

​

(6,602)

​

​

(5,193)

Other

​

 

(290)

​

 

(253)

Total tax liabilities

​

 

(7,836)

​

 

(6,177)

Net deferred tax asset

​

$

1,412

​

$

2,679

​

At December 31, 2024 and 2023, the Company had no valuation allowance established against its deferred tax assets as we believe the Company will generate sufficient future taxable income to fully utilize these assets.

The Company utilizes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company has no tax liability for uncertain tax positions. The Company’s federal and state income tax returns for taxable years through 2020 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue.