Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of income tax (benefit)

	2023		2022		2021
	(Dollars in thousands)
Currently payable tax:
Federal	$	15,888	$	18,994	$	10,207
State		9,241		8,798		7,988
Total currently payable		25,129		27,792		18,195
Deferred tax expense (benefit):
Federal		616		(1,237)		1,175
State		231		1,256		(1,200)
Total deferred tax		847		19		(25)
Income tax expense	$	25,976	$	27,811	$	18,170

Schedule of effective tax rate differs from the federal statutory rate

	2023		2022		2021
Statutory Federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	8.3	%	8.4	%	8.1	%
Stock option/restricted stock windfall tax benefit	0.1	%	(0.1)	%	(0.2)	%
Increase in cash surrender value of life insurance	(0.5)	%	(0.4)	%	(0.6)	%
Low income housing credits, net of investment losses	(0.2)	%	(0.2)	%	(0.3)	%
Non-taxable interest income	(0.2)	%	(0.2)	%	(0.5)	%
Split-dollar term insurance	0.0	%	0.0	%	0.1	%
ISO stock exercise	0.0	%	0.0	%	(0.1)	%
Other, net	0.2	%	1.0	%	0.1	%
Effective tax rate	28.7	%	29.5	%	27.6	%

Schedule of deferred tax assets and liabilities

	2023		2022
	(Dollars in thousands)
Deferred tax assets:
Allowance for credit losses on loans	$	14,087	$	14,171
Lease accounting		9,304		9,703
Defined postretirement benefit obligation		7,778		7,585
Accrued expenses		3,150		3,440
Securities available-for-sale		2,897		4,690
State income taxes		1,874		1,924
Stock compensation		1,501		1,363
Federal net operating loss carryforwards		1,403		1,719
Premises and equipment		1,375		1,677
California net operating loss carryforwards		986		1,106
Nonaccrual interest		135		174
Split-dollar life insurance benefit plan		71		49
Other		323		201
Total deferred tax assets		44,884		47,802
Deferred tax liabilities:
Lease accounting		(9,304)		(9,703)
Loan fees		(2,315)		(2,304)
Intangible liabilities		(1,639)		(1,940)
Prepaid expenses		(1,473)		(1,304)
FHLB stock		(156)		(156)
I/O strips		(30)		(40)
Other		(202)		(179)
Total deferred tax liabilities		(15,119)		(15,626)
Net deferred tax assets	$	29,765	$	32,176

Summary of carrying amount of low income tax housing investment

	December 31,		December 31,
	2023		2022
	(Dollars in thousands)
Low income housing investments	$	2,794	$	3,537
Future commitments	$	494	$	523