INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense in the consolidated statements of income for the years ended December 31, 2023 and 2022 are as follows:

(dollars in thousands)	2023		2022
Current federal expense	$	5,837	$	2,855
Deferred federal expense	(430)		782
Federal income tax expense	5,407		3,637
Current state expense	115		(474)
Deferred state expense	(56)		147
State income tax expense	59		(327)
Provision for income taxes	$	5,466	$	3,310

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the differences for the years ended December 31, 2023 and 2022 is as follows:

(dollars in thousands)	2023		2022
Tax at federal income tax rate	$	5,715	$	4,799
Change resulting from:
State taxes	47		(258)
Tax-exempt interest	(238)		(541)
Income in cash value of bank owned life insurance	(293)		(329)
Tax-exempt insurance premiums	(192)		(248)
Other	427		(113)
Provision for income taxes	$	5,466	$	3,310

Schedule of Deferred Tax Assets and Liabilities

The components of deferred income taxes for the years ended December 31, 2023 and 2022 are as follows:

(dollars in thousands)	2023		2022
Deferred Tax Assets
Allowance for credit losses	$	4,675	$	4,108
Lease liability	465		483
Net operating loss carryforwards	2,223		3,160
Tax credit carryforwards	469		501
Deferred compensation	278		282
Unrealized loss on securities available for sale	18,903		22,703
Restricted stock	251		308
Investment in partnerships	186		195
Unrealized loss on hedging investments	111		—
Nonaccrual interest	521		50
Allowance for unfunded commitments	350		—
Other	113		—
Gross deferred tax assets	28,545		31,790
Deferred Tax Liabilities
Premises and equipment	559		707
Right of use lease asset	402		467
Purchase accounting adjustments	1,831		1,779
Core deposit intangible	348		638
Gross deferred tax liabilities	3,140		3,591
Net deferred tax assets	$	25,405	$	28,199