INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Income Tax Expense

Income tax expense is summarized as follows:

(Dollar amounts in thousands)	2022		2021		2020
Federal:
Currently payable	$	11,016	$	7,978	$	7,886
Deferred		2,277		1,488		1,188
		13,293		9,466		9,074
State:
Currently payable		2,485		3,080		2,422
Deferred		873		80		196
		3,358		3,160		2,618
TOTAL	$	16,651	$	12,626	$	11,692

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)	2022		2021		2020
Federal income taxes computed at the statutory rate	$	18,430	$	13,779	$	13,763
Add (deduct) tax effect of:
Tax exempt income		(3,439)		(2,745)		(2,643)
ESOP dividend deduction		(103)		(101)		(98)
State tax, net of federal benefit		2,653		2,496		2,068
General business tax credits		(674)		(716)		(1,648)
Other, net		(216)		(87)		250
TOTAL	$	16,651	$	12,626	$	11,692

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, 2022 and 2021, are as follows:

(Dollar amounts in thousands)	2022		2021
Deferred tax assets:
Other than temporary impairment	$	752	$	764
Net unrealized losses on retirement plans		5,614		6,033
Net unrealized loss on available for sale securities		39,242		—
Loan loss provisions		10,054		12,476
Unfunded commitments		537		764
Deferred compensation		1,957		2,367
Compensated absences		709		739
Post-retirement benefits		1,051		1,284
Lease liability		1,572		1,597
Purchase accounting		114		1,333
Other		3,018		2,770
GROSS DEFERRED ASSETS		64,620		30,127
Deferred tax liabilities:
Net unrealized gains on securities available-for-sale		—		(4,269)
Depreciation		(660)		(1,611)
Mortgage servicing rights		(458)		(515)
Pensions		(1,120)		(1,647)
Right-of-use asset		(1,566)		(1,591)
Intangibles		(6,093)		(5,717)
FHLB stock dividends		(32)		(32)
Other		(4,118)		(4,113)
GROSS DEFERRED LIABILITIES		(14,047)		(19,495)
NET DEFERRED TAX ASSETS	$	50,573	$	10,632

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)	2022		2021		2020
Balance at January 1	$	808	$	867	$	825
Additions based on tax positions related to the current year		59		9		114
Additions based on tax positions related to prior years		—		—		—
Reductions due to the statute of limitations		(9)		(68)		(72)
Balance at December 31	$	858	$	808	$	867