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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes consists of the following:
202520242023
Current Federal$17,453 $17,521 $13,067 
Current State1,723 3,306 1,934 
Deferred Federal7,126 (766)2,602 
Deferred State1,133 227 156 
Total Income Tax Expense from Continuing Operations$27,435 $20,288 $17,759 

Effective tax rates differ from the federal statutory rate of 21% for 2025, 2024 and 2023 applied to income before income taxes due to the following:
 202520242023
AmountPercentAmountPercentAmountPercent
Federal Statutory Income Tax$29,415 21.00 %$21,861 21.00 %$21,766 21.00 %
Effect of:
State and Local Income Tax, Net of Federal Tax Effect*2,256 1.61 2,782 2.67 1,651 1.59 
Tax Credits:
General Business Tax Credits, Net of Amortization(40)(0.03)(54)(0.05)(27)(0.03)
Nontaxable or Nondeductible Items:
Income from Tax-exempt Loans and Investments, Net of Interest Expense Disallowance(3,842)(2.74)(4,008)(3.85)(4,951)(4.78)
Other Differences(354)(0.25)(293)(0.28)(680)(0.65)
Total Income Taxes$27,435 19.59 %$20,288 19.49 %$17,759 17.13 %
*State taxes in Indiana and Kentucky made up the majority (greater than 50 percent) of the tax effect in this category.

The Company does not have income from foreign sources and therefore does not have any foreign income tax.

Income taxes paid were as follows, net of refunds:
20252024
Federal$16,550 $14,823 
State and Local
     Indiana1,900 1,430 
     Kentucky375 1,450 
     All Other States100 120 
     Total Taxes Paid$18,925 $17,823 
The net deferred tax asset/(liability) at December 31 consists of the following:
 20252024
Deferred Tax Assets:  
Allowance for Credit Losses$18,805 $11,088 
Lease Liability (Operating Leases)1,372 1,121 
Unrealized Loss on Securities43,915 58,803 
Deferred Compensation and Employee Benefits1,055 933 
Other-than-temporary Impairment239 246 
Accrued Expenses1,504 1,248 
Business Combination Fair Value Adjustments11,391 — 
Pension and Postretirement Plans182 182 
Other Real Estate Owned40 41 
Non-Accrual Loan Interest Income472 355 
Net Operating Loss Carryforward3,101 488 
Other1,679 1,046 
Total Deferred Tax Assets83,755 75,551 
Deferred Tax Liabilities:  
Depreciation(5,516)(3,095)
Leasing Activities, Net(15,208)(13,039)
FHLB Stock Dividends(442)(432)
Prepaid Expenses(358)(136)
Intangibles(9,660)(2,061)
Deferred Loan Fees(1,058)(996)
Mortgage Servicing Rights(1,088)(44)
Right of Use Asset (Operating Leases)(1,321)(1,080)
Business Combination Fair Value Adjustments— (640)
Other(976)(1,198)
Total Deferred Tax Liabilities(35,627)(22,721)
Valuation Allowance— — 
Net Deferred Tax Asset/(Liability)$48,128 $52,830 
Under the Internal Revenue Code, through 1996, three acquired banking companies, which are now a part of the Company’s single banking subsidiary, were allowed a special bad debt deduction related to additions to tax bad debt reserves established for the purpose of absorbing losses. The acquired banks were formerly known as River Valley Financial Bank (acquired in March 2016), Peoples Community Bank (acquired in October 2005) and First American Bank (acquired in January 1999). Subject to certain limitations, these banks were permitted to deduct from taxable income an allowance for bad debts based on a percentage of taxable income before such deductions or actual loss experience. Each of the banks generally computed its annual addition to its bad debt reserves using the percentage of taxable income method; however, due to certain limitations in 1996, the banks were only allowed a deduction based on actual loss experience.

Retained earnings at December 31, 2025, include approximately $5,095 for which no provision for federal income taxes has been made. This amount represents allocations of income for allowable bad debt deductions. Reduction of amounts so allocated for purposes other than tax bad debt losses will create taxable income, which will be subject to the then current corporate income tax rate. It is not contemplated that amounts allocated to bad debt deductions will be used in any manner to create taxable income. The unrecorded deferred income tax liability on the above amount at December 31, 2025 was approximately $1,070.

As of December 31, 2025, the Company had Federal net operating loss carryforwards of $13,041 that do not expire and Kentucky net operating loss carryforwards of $8,666, which expire in years ranging from 2030 through 2040. These net operating loss carryforwards are expected to be fully utilized before their expiration dates.

Unrecognized Tax Benefits
The Company had no unrecognized tax benefits as of December 31, 2025, 2024, and 2023, and did not recognize any increase in unrecognized benefits during 2025 relative to any tax positions taken in 2025. Should the accrual of any interest or penalties
relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in its income tax expense accounts; no such accruals existed as of December 31, 2025, 2024, and 2023. The Company and its corporate subsidiaries file a consolidated U.S. Federal income tax return, which is subject to examination for all years after 2021. The Company and its corporate subsidiaries file combined/unitary returns in various states, which are subject to examination for all years after 2021.