Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES (Dollars In Thousands)

The provision for income taxes is summarized below:

Current Tax Expense:	2020		2019		2018
Federal	$	10,791	$	7,706	$	7,668
State	2,485		1,550		1,450
Total Current Tax Expense	13,276		9,256		9,118
Deferred Tax Expense (Benefit):
Federal	(1,569)		427		(40)
State	(671)		(83)		(52)
Total Deferred Tax Expense (Benefit)	(2,240)		344		(92)
Total Provision for Income Taxes	$	11,036	$	9,600	$	9,026

The provisions for income taxes differed from the amounts computed by applying the U.S. Federal Income Tax Rate of 21% to pre-tax income as a result of the following:

	2020			2019		2018
Statutory Federal Tax Rate		21.0	%	21.0	%	21.0	%
Increase (Decrease) Resulting From:
Tax-Exempt Income		(2.1)		(2.7)		(3.1)
Nondeductible Interest Expense		0.1		0.2		0.1
State Taxes, Net of Federal Income Tax Benefit		2.6		2.3		2.4
Tax benefit from stock based compensation		(0.1)		(0.3)		(0.4)
Other Items, Net		(0.2)		(0.1)		(0.1)
Effective Tax Rate		21.3	%	20.4	%	19.9	%

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

	2020		2019
Deferred Tax Assets:
Allowance for Loan Losses	$	7,472	$	5,383
Lease liabilities	2,717		2,787
Pension and Deferred Compensation Plans	3,149		2,923
Pension Liability Included in Accumulated Other Comprehensive Income	2,439		2,329
Historic Tax Credit	1,394		—
Other	385		352
Total Gross Deferred Tax Assets	17,556		13,774
Valuation Allowance for Deferred Tax Assets	—		—
Total Gross Deferred Tax Assets, Net of Valuation Allowance	$	17,556	$	13,774
Deferred Tax Liabilities:
Pension Plans	$	5,368	$	5,270
Depreciation	3,018		1,943
ROU assets	2,638		2,748
Deferred Income	2,327		3,215
Net Unrealized Gains on Equity Securities	132		240
Net Unrealized Gains on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	1,991		160
Goodwill	3,474		3,502
Gain on Cash Flow Hedge Agreements	166		$	—
Total Gross Deferred Tax Liabilities	$	19,114	$	17,078
Deferred Tax Liability, Net	$	1,558	$	3,304

Management believes that the realization of the recognized gross deferred tax assets at December 31, 2020 and 2019 is more likely than not, based on historic earnings and expectations as to future taxable income.

Interest and penalties are recorded as a component of the provision for income taxes, if any.  There are no current examinations of our Federal or state income tax returns, nor have we been notified of any upcoming examinations. Tax years 2017 through 2020 are subject to Federal and New York State examination. Management annually conducts an analysis of its tax positions and has concluded that it has no uncertain tax positions as of December 31, 2020.