INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Schedule of income tax expense

Income tax expense is summarized as follows:

(Dollar amounts in thousands)	2023		2022		2021
Federal:
Currently payable	$	9,047	$	11,016	$	7,978
Deferred		263		2,277		1,488
		9,310		13,293		9,466
State:
Currently payable		2,302		2,485		3,080
Deferred		209		873		80
		2,511		3,358		3,160
TOTAL	$	11,821	$	16,651	$	12,626

Schedule of 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)	2023		2022		2021
Federal income taxes computed at the statutory rate	$	15,223	$	18,430	$	13,779
Add (deduct) tax effect of:
Tax exempt income		(3,548)		(3,439)		(2,745)
ESOP dividend deduction		(107)		(103)		(101)
State tax, net of federal benefit		1,984		2,653		2,496
General business tax credits		(1,720)		(674)		(716)
Other, net		(11)		(216)		(87)
TOTAL	$	11,821	$	16,651	$	12,626

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, 2023 and 2022, are as follows:

(Dollar amounts in thousands)	2023		2022
Deferred tax assets:
Other than temporary impairment	$	739	$	752
Net unrealized losses on retirement plans		3,497		5,614
Net unrealized loss on available for sale securities		35,358		39,242
Loan loss provisions		9,772		10,054
Unfunded commitments		528		537
Deferred compensation		1,711		1,957
Compensated absences		783		709
Post-retirement benefits		1,218		1,051
Lease liability		1,463		1,572
Purchase accounting		—		114
Other		3,808		3,018
GROSS DEFERRED ASSETS		58,877		64,620
Deferred tax liabilities:
Depreciation		(350)		(660)
Mortgage servicing rights		(310)		(458)
Pensions		(1,458)		(1,120)
Right-of-use asset		(1,452)		(1,566)
Intangibles		(6,318)		(6,093)
FHLB stock dividends		—		(32)
Purchase accounting		(157)		—
Other		(4,732)		(4,118)
GROSS DEFERRED LIABILITIES		(14,777)		(14,047)
NET DEFERRED TAX ASSETS	$	44,100	$	50,573

Schedule of 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)	2023		2022		2021
Balance at January 1	$	858	$	808	$	867
Additions based on tax positions related to the current year		74		59		9
Additions based on tax positions related to prior years		—		—		—
Reductions due to the statute of limitations		(106)		(9)		(68)
Balance at December 31	$	826	$	858	$	808