Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Income Tax (Benefit) Expense Attributable to Income from Operations

The income tax expense (benefit) attributable to income from operations is summarized as follows:


(In thousands)	Current		Deferred		Total
2024
Federal	$	20,248	$	(3,313)	$	16,935
State	4,837		231		5,068
Total	$	25,085	$	(3,082)	$	22,003
2023
Federal	$	2,583	$	381	$	2,964
State	346		(815)		(469)
Total	$	2,929	$	(434)	$	2,495
2022
Federal	$	19,238	$	994	$	20,232
State	4,409		(84)		4,325
Total	$	23,647	$	910	$	24,557

Schedule of Effective Income Tax Rate Reconciliation

The primary reasons for the differences between income tax expense and the amount computed by applying the statutory federal income tax rate to earnings are as follows:


	2024		2023		2022
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	4.5	%	(3.1)	%	3.1	%
Tax exempt income	(1.3)	%	(9.4)	%	(1.1)	%
Excess benefits from equity-based compensation	(0.1)	%	1.1	%	(0.3)	%
Bank-owned life insurance income	(0.6)	%	(3.0)	%	(0.2)	%
Surrender of Bank-owned life insurance	0.0	%	13.6	%	0.0	%
Federal tax credit	(0.2)	%	(0.8)	%	0.0	%
Non-Deductible Meals & Entertainment	0.1	%	1.3	%	0.0	%
Section 162(m) Limitation	0.1	%	1.1	%	0.2	%
Deductible ESOP Dividends under 404(k)	(0.3)	%	(2.5)	%	(0.3)	%

All other	0.5	%	1.5	%	0.0	%
Total	23.7	%	20.8	%	22.4	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows:


(In thousands)	2024		2023
Deferred tax assets:
Allowance for credit losses	$	14,733	$	13,731
Lease liability	7,119		7,267
Interest income on nonperforming loans	870		992
Compensation and benefits	12,936		12,414
Purchase accounting adjustments	323		424

Liabilities held at fair value	78		54
Deferred loan fees and costs	1,290		1,111
Net operating loss carryforwards	0		491
Other	753		744
Total	$	38,102	$	37,228
Deferred tax liabilities:
Prepaid pension	12,019		11,813
Right of use asset	6,763		6,955
Depreciation	3,068		3,505
Intangibles	1,675		1,600

Leases	2,199		2,688
Taxable bank-owned life insurance policies	0		1,834
Contingent Commissions	871		778
Other	1,336		855
Total deferred tax liabilities	$	27,931	$	30,028
Net deferred tax asset at year-end	10,171		7,200
Net deferred tax asset at beginning of year	7,200		6,766
Increase in net deferred tax asset	2,971		434

Investments in tax credit structures accounting standard adoption recorded through equity	111		0
Deferred tax benefit	$	(3,082)	$	(434)