INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Schedule of income tax expense

Income tax expense is summarized as follows:

(Dollar amounts in thousands)	2024		2023		2022
Federal:
Currently payable	$	11,028	$	9,047	$	11,016
Deferred		(3,067)		263		2,277
		7,961		9,310		13,293
State:
Currently payable		2,131		2,302		2,485
Deferred		(213)		209		873
		1,918		2,511		3,358
TOTAL	$	9,879	$	11,821	$	16,651

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)	2024		2023		2022
Federal income taxes computed at the statutory rate	$	12,002	$	15,223	$	18,430
Add (deduct) tax effect of:
Tax exempt income		(3,395)		(3,548)		(3,439)
ESOP dividend deduction		(73)		(107)		(103)
State tax, net of federal benefit		1,515		1,984		2,653
General business tax credits		(542)		(1,720)		(674)
Other, net		372		(11)		(216)
TOTAL	$	9,879	$	11,821	$	16,651

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, 2024 and 2023, are as follows:

(Dollar amounts in thousands)	2024		2023
Deferred tax assets:
Other than temporary impairment	$	742	$	739
Net unrealized losses on retirement plans		1,493		3,497
Net unrealized loss on available for sale securities		38,000		35,358
Loan loss provisions		11,543		9,772
Unfunded commitments		530		528
Deferred compensation		1,863		1,711
Compensated absences		814		783
Post-retirement benefits		1,188		1,218
Lease liability		1,953		1,463
Other		4,147		3,808
GROSS DEFERRED ASSETS		62,273		58,877
Deferred tax liabilities:
Depreciation		(236)		(350)
Mortgage servicing rights		(204)		(310)
Pensions		(1,594)		(1,458)
Right-of-use asset		(1,927)		(1,452)
Intangibles		(6,246)		(6,318)
Purchase accounting		(189)		(157)
Other		(3,860)		(4,732)
GROSS DEFERRED LIABILITIES		(14,256)		(14,777)
NET DEFERRED TAX ASSETS	$	48,017	$	44,100

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)	2024		2023		2022
Balance at January 1	$	826	$	858	$	808
Additions based on tax positions related to the current year		126		74		59
Additions based on tax positions related to prior years		—		—		—
Reductions due to the statute of limitations		(174)		(106)		(9)
Balance at December 31	$	778	$	826	$	858