Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is summarized below:







Current Tax Expense:	2025		2024		2023
Federal	$	8,903	$	7,187	$	4,611
State	2,339		1,251		1,035
Total Current Tax Expense	11,242		8,438		5,646
Deferred Tax Expense (Benefit):
Federal	384		(631)		1,825
State	(191)		(158)		(26)
Total Deferred Tax Expense (Benefit)	193		(789)		1,799

Total Provision for Income Taxes	$	11,435	$	7,649	$	7,445

Schedule of Effective Income Tax Rate Reconciliation

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


	2025
	Amount		Percent
Statutory Federal Tax Rate	$	11,632	21.0	%
State Taxes, Net of Federal Income Tax Benefit (1)	1,697		3.1
Nontaxable or Nondeductible Items
Tax-Exempt Investment Income	(655)		(1.2)
Bank Owned Life Insurance	(349)		(0.6)
Other Items, Net (2)	189		0.3
Tax Credits
Low Income Housing Credits	(53)		(0.1)
Purchased Energy Production Credits	(1,026)		(1.9)
Provision for Income Taxes	$	11,435	20.6	%

(1) State taxes in New York made up the majority (greater than 50%) of the tax effect in this category.
(2) The "Nontaxable or Nondeductible Items" category includes items such as meals and entertainment, compensation related deductions and other non-deductible expenses. None of those items individually or in the aggregate exceeded the 5% quantitative threshold for separate disaggregation in the current year.

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


	2024	2023

Statutory Federal Tax Rate	21.0%	21.0%
(Decrease) Increase Resulting From:
Tax-Exempt Investment Income	(2.1)	(2.3)

State Taxes, Net of Federal Income Tax Benefit	2.3	2.3
Bank Owned Life Insurance	(0.9)	(1.0)
Other Items, Net	0.2	(0.2)
Effective Tax Rate	20.5%	19.8%

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, 2025 and 2024 are presented below:


	2025		2024
Deferred Tax Assets:
Net Unrealized Losses on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	$	4,392	$	9,427
Allowance for Credit Losses	8,859		9,068
Lease liabilities	2,403		2,539
Pension and Deferred Compensation Plans	3,308		3,460



Other	1,734		773

Total Gross Deferred Tax Assets	20,696		25,267
Valuation Allowance for Deferred Tax Assets	—		—
Total Gross Deferred Tax Assets, Net of Valuation Allowance	$	20,696	$	25,267
Deferred Tax Liabilities:
Pension Plans	$	5,349	$	5,397
Depreciation	5,515		4,692
ROU assets	2,136		2,298
Deferred Income	3,452		3,524
Prepaid Pension Included in Accumulated Other Comprehensive Income	2,183		1,445
Net Unrealized Gains on Equity Securities	381		241

Goodwill	3,413		3,373
Gain on Cash Flow Hedge Agreements Included in Accumulated Other Comprehensive Income	855		1,620
Other	—		64
Total Gross Deferred Tax Liabilities	$	23,284	$	22,654

Deferred Tax (Liability) Asset, Net	$	(2,588)	$	2,613

Schedule of Cash Flow, Supplemental Disclosures

The following table presents income taxes paid for the year ended December 31, 2025.


Federal Taxes Paid	$	6,100
New York State Taxes Paid	1,307
Purchase of Energy Tax Credits	11,241
Total Paid	$	18,648