Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is summarized below:


Current Tax Expense:	2021		2020		2019
Federal	$	10,957	$	10,791	$	7,706
State	2,645		2,485		1,550
Total Current Tax Expense	13,602		13,276		9,256
Deferred Tax Expense (Benefit):
Federal	712		(1,569)		427
State	233		(671)		(83)
Total Deferred Tax Expense (Benefit)	945		(2,240)		344

Total Provision for Income Taxes	$	14,547	$	11,036	$	9,600

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:


	2021		2020		2019

Statutory Federal Tax Rate	21.0	%	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 Benefit	3.4		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 Rate	22.6	%	21.3	%	20.4	%

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, 2021 and 2020 are presented below:


	2021		2020
Deferred Tax Assets:
Allowance for Credit Losses	$	7,440	$	7,472
Lease liabilities	3,142		2,717
Pension and Deferred Compensation Plans	3,309		3,149
Pension Liability Included in Accumulated Other Comprehensive Income	124		2,439
Historic Tax Credit	1,023		1,394
Net Unrealized Losses on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	211		—
Other	841		385

Total Gross Deferred Tax Assets	16,090		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
Depreciation	3,070		3,018
ROU assets	3,005		2,638
Deferred Income	3,778		2,327
Net Unrealized Gains on Equity Securities	160		132
Net Unrealized Gains on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	—		1,991
Goodwill	3,428		3,474
Gain on Cash Flow Hedge Agreements	453		166
Other	85		—
Total Gross Deferred Tax Liabilities	$	19,449	19,114

Deferred Tax Liability, Net	$	3,359	$	1,558