Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

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

Schedule of Effective Income Tax Rate Reconciliation

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	%

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 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