INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) was as follows for the periods indicated (dollars in thousands):

	Year Ended December 31,
	2024			2023		2022
Current expense
Federal	$	14,184		$	16,192	$	13,250
State		440			381		302
Deferred expense
Federal		(1,049	)		99		1,359
Total	$	13,575		$	16,672	$	14,911

Effective Income Tax Rate Reconciliation

Effective tax rates differ from the federal statutory rate of 21% applied to income before income taxes due to the following for the periods indicated (dollars in thousands):

	Year Ended December 31,
	2024			2023			2022
Federal statutory rate times financial statement income	$	13,291		$	16,678		$	15,362
Effect of:
Tax-exempt income		(701	)		(836	)		(953	)
State taxes, net of federal benefit		348			301			239
Earnings from bank owned life insurance		(326	)		(279	)		(251	)
Non-deductible expenses		648			675			409
Other, net		315			133			105
Total	$	13,575		$	16,672		$	14,911
Effective tax rate		21.45	%		20.99	%		20.38	%

Deferred Tax Assets and Liabilities

Year-end deferred tax assets and liabilities were due to the following at year-end (dollars in thousands):

	December 31,
	2024			2023
Deferred tax assets
Allowance for credit losses	$	9,080		$	8,895
Deferred compensation		5,884			5,640
Leases		197			200
Other real estate owned		23			30
Nonaccrual loans		320			78
Unrealized gain on available-for-sale securities		19,273			17,234
Other		446			456
Total deferred tax assets		35,223			32,533
Deferred tax liabilities
Depreciation		(2,457	)		(2,800	)
Intangibles		(401	)		(626	)
Prepaid expenses		(704	)		(564	)
Mortgage servicing rights		(5,521	)		(5,580	)
Other		(3,300	)		(3,550	)
Total deferred tax liabilities		(12,383	)		(13,120	)
Net deferred tax asset	$	22,840		$	19,413