Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is summarized below:


Current Tax Expense:	2022		2021		2020
Federal	$	12,263	$	10,957	$	10,791
State	3,103		2,645		2,485
Total Current Tax Expense	15,366		13,602		13,276
Deferred Tax (Benefit) Expense:
Federal	(798)		712		(1,569)
State	(454)		233		(671)
Total Deferred Tax (Benefit) Expense	(1,252)		945		(2,240)

Total Provision for Income Taxes	$	14,114	$	14,547	$	11,036

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:


	2022		2021		2020

Statutory Federal Tax Rate	21.0	%	21.0	%	21.0	%
(Decrease) Increase Resulting From:

Tax-Exempt Income	(1.4)		(1.5)		(2.1)
Nondeductible Interest Expense	—		—		0.1
State Taxes, Net of Federal Income Tax Benefit	3.4		3.4		2.6
Tax benefit from stock based compensation	—		—		(0.1)
Other Items, Net	(0.6)		(0.3)		(0.2)
Effective Tax Rate	22.4	%	22.6	%	21.3	%

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, 2022 and 2021 are presented below:


	2022		2021
Deferred Tax Assets:
Net Unrealized Losses on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	$	16,914	$	211
Allowance for Credit Losses	8,199		7,440
Lease liabilities	2,821		3,142
Pension and Deferred Compensation Plans	3,571		3,309
Pension Liability Included in Accumulated Other Comprehensive Income	1,692		124
Historic Tax Credit	749		1,023

Other	745		841

Total Gross Deferred Tax Assets	34,691		16,090
Valuation Allowance for Deferred Tax Assets	—		—
Total Gross Deferred Tax Assets, Net of Valuation Allowance	$	34,691	$	16,090
Deferred Tax Liabilities:
Pension Plans	$	5,606	$	5,470
Depreciation	3,165		3,070
ROU assets	2,646		3,005
Deferred Income	3,266		3,778
Net Unrealized Gains on Equity Securities	272		160

Goodwill	3,416		3,428
Gain on Cash Flow Hedge Agreements	1,404		453
Other	—		85
Total Gross Deferred Tax Liabilities	$	19,775	$	19,449

Deferred Tax Asset (Liability), Net	$	14,916	$	(3,359)