Income Tax (Tables)

12 Months Ended

Dec. 31, 2022

Reconciliation of Federal Statutory to Actual Tax Expense

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2022, 2021 and 2020:


	2022			2021			2020
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%	$	53,692		$	50,566		$	35,695
Tax-exempt Interest Income	(19,349)			(16,200)			(13,273)

Stock Compensation	(214)			(20)			338
Earnings on Life Insurance	(2,344)			(1,468)			(1,079)
Tax Credits	(414)			(354)			(425)
CARES Act - NOL carryback rate differential	—			—			(1,178)
State Tax	2,494			2,697			1,122
Other	(280)			38			175
Income Tax Expense	$	33,585		$	35,259		$	21,375

Effective Tax Rate	13.1		%	14.6		%	12.6		%

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following components for the years ended December 31, 2022, 2021, 2020:


	2022		2021		2020
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	21,824	$	24,634	$	28,463
State	2,696		1,473		2,647
Deferred:
Federal	8,604		7,211		(8,508)

State	461		1,941		(1,227)
Income Tax Expense	$	33,585	$	35,259	$	21,375

Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2022 and 2021:


	2022		2021
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	61,484	$	52,995
Differences in Accounting for Loan Fees	2,094		2,016

Deferred Compensation	3,922		4,172

Federal & State Income Tax Loss Carryforward and Credits	600		747
Net Unrealized Loss on Securities Available for Sale	62,323		—
Other	2,883		3,585
Total Assets	133,306		63,515
Liabilities:
Differences in Depreciation Methods	7,039		5,726
Differences in Accounting for Loans and Securities	1,058		3,078
Difference in Accounting for Pensions and Other Employee Benefits	3,687		4,586
State Income Tax	1,859		1,499
Net Unrealized Gain on Securities Available for Sale	—		15,889
Gain on FDIC Modified Whole Bank Transaction	287		306
Other	9,919		8,108
Total Liabilities	23,849		39,192
Net Deferred Tax Asset	$	109,457	$	24,323