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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES (Dollars In Thousands)
    
The provision for income taxes is summarized below:
  
Current Tax Expense:202120202019
Federal$10,957 $10,791 $7,706 
State2,645 2,485 1,550 
Total Current Tax Expense13,602 13,276 9,256 
Deferred Tax Expense (Benefit):
Federal712 (1,569)427 
State233 (671)(83)
Total Deferred Tax Expense (Benefit)945 (2,240)344 
Total Provision for Income Taxes$14,547 $11,036 $9,600 

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:
202120202019
Statutory Federal Tax Rate21.0 %21.0 %21.0 %
(Decrease) Increase Resulting From:
Tax-Exempt Income(1.5)(2.1)(2.7)
Nondeductible Interest Expense— 0.1 0.2 
State Taxes, Net of Federal Income Tax Benefit3.4 2.6 2.3 
Tax benefit from stock based compensation — (0.1)(0.3)
Other Items, Net(0.3)(0.2)(0.1)
Effective Tax Rate22.6 %21.3 %20.4 %
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below:
20212020
Deferred Tax Assets:
Allowance for Credit Losses$7,440 $7,472 
Lease liabilities3,142 2,717 
Pension and Deferred Compensation Plans3,309 3,149 
Pension Liability Included in Accumulated Other Comprehensive Income124 2,439 
Historic Tax Credit1,023 1,394 
Net Unrealized Losses on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income211 — 
Other841 385 
Total Gross Deferred Tax Assets16,090 17,556 
Valuation Allowance for Deferred Tax Assets— — 
Total Gross Deferred Tax Assets, Net of Valuation Allowance$16,090 $17,556 
Deferred Tax Liabilities:
Pension Plans$5,470 $5,368 
Depreciation3,070 3,018 
ROU assets3,005 2,638 
Deferred Income3,778 2,327 
Net Unrealized Gains on Equity Securities160 132 
Net Unrealized Gains on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income— 1,991 
Goodwill3,428 3,474 
Gain on Cash Flow Hedge Agreements453 166 
Other85 — 
Total Gross Deferred Tax Liabilities$19,449 19,114 
Deferred Tax Liability, Net$3,359 $1,558 

Management believes that the realization of the recognized gross deferred tax assets at December 31, 2021 and 2020 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 2018 through 2021 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, 2021.