INCOME TAXES: (Tables)

12 Months Ended

Dec. 31, 2020

Income tax expense is summarized as follows:


(Dollar amounts in thousands)	2020		2019		2018
Federal:
Currently payable	$	7,886	$	7,118	$	7,018
Deferred	1,188		2,435		1,793

	9,074		9,553		8,811
State:
Currently payable	2,422		2,168		1,699
Deferred	196		406		635
	2,618		2,574		2,334
TOTAL	$	11,692	$	12,127	$	11,145

Reconciliation of Income Tax Expense

The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized as follows:


(Dollar amounts in thousands)	2020		2019		2018
Federal income taxes computed at the statutory rate	$	13,763	$	12,810	$	12,122
Add (deduct) tax effect of:
Tax exempt income	(2,643)		(2,551)		(2,495)

ESOP dividend deduction	(98)		(115)		(103)
State tax, net of federal benefit	2,068		2,034		1,846
General business tax credits	(1,648)		(148)		(148)

Other, net	250		97		(77)
TOTAL	$	11,692	$	12,127	$	11,145

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2020 and 2019, are as follows:


(Dollar amounts in thousands)	2020		2019
Deferred tax assets:
Other than temporary impairment	$	753	$	754
Net unrealized losses on retirement plans	8,132		7,465

Loan loss provisions	12,150		5,288
Deferred compensation	2,496		2,615
Compensated absences	623		611
Post-retirement benefits	1,286		1,309
Lease liability	1,450		1,503
Purchase accounting	1,060		1,600
Deferred loss on acquisition	—		482
Other	2,186		2,161
GROSS DEFERRED ASSETS	30,136		23,788
Deferred tax liabilities:
Net unrealized gains on securities available-for-sale	(8,752)		(4,248)
Depreciation	(2,155)		(2,376)
Mortgage servicing rights	(390)		(332)
Pensions	(843)		(475)
Right-of-use asset	(1,446)		(1,501)
Intangibles	(5,458)		(3,285)
FHLB stock dividends	(111)		—

Other	(3,963)		(2,827)
GROSS DEFERRED LIABILITIES	(23,118)		(15,044)
NET DEFERRED TAX ASSETS	$	7,018	$	8,744

Reconciliation of Unrecognized Tax Benefits

Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(Dollar amounts in thousands)	2020		2019		2018
Balance at January 1	$	825	$	922	$	825
Additions based on tax positions related to the current year	114		298		174
Additions based on tax positions related to prior years	—		—		—
Reductions due to the statute of limitations	(72)		(395)		(77)
Balance at December 31	$	867	$	825	$	922