INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

INCOME TAXES [Abstract]

Components of Income Tax Expense (Benefit)

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

	Year Ended December 31,
	2025			2024			2023
Current expense
Federal	$	16,105		$	14,184		$	16,192
State		520			440			381
Deferred expense
Federal		(1,023	)		(1,049	)		99
Total	$	15,602		$	13,575		$	16,672

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,
	2025						2024						2023
	Amount			Rate			Amount			Rate			Amount			Rate
Federal statutory rate times financial statement income	$	15,555			21.0	%	$	13,291			21.0	%	$	16,678			21.0	%
Effect of:
Tax-exempt income		(718	)		(1.0	)%		(701	)		(1.1	)%		(836	)		(1.1	)%
State taxes, net of federal benefit		411			0.6	%		348			0.6	%		301			0.4	%
Earnings from bank owned life insurance		(343	)		(0.5	)%		(326	)		(0.5	)%		(279	)		(0.4	)%
Non-deductible expenses		499			0.7	%		648			1.0	%		675			0.8	%
Other, net		198			0.3	%		315			0.5	%		133			0.2	%
Total	$	15,602			21.1	%	$	13,575			21.5	%	$	16,672			20.9	%

Income Taxes Paid, Net of Refunds Received

Income taxes paid, net of refunds received, were as follows for the periods indicated (dollars in thousands):

	Year Ended December 31,
	2025		2024		2023
Federal	$	16,721	$	12,104	$	19,102
State		472		431		286

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,
	2025			2024
Deferred tax assets
Allowance for credit losses	$	9,478		$	9,080
Deferred compensation		6,038			5,884
Leases		204			197
Other real estate owned		44			23
Nonaccrual loans		111			320
Unrealized gain on available-for-sale securities		14,708			19,273
Other		568			446
Total deferred tax assets		31,151			35,223
Deferred tax liabilities
Depreciation		(2,629	)		(2,457	)
Intangibles		(260	)		(401	)
Prepaid expenses		(625	)		(704	)
Mortgage servicing rights		(5,049	)		(5,521	)
Other		(2,155	)		(3,300	)
Total deferred tax liabilities		(10,718	)		(12,383	)
Net deferred tax asset	$	20,433		$	22,840