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INCOME TAX
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAX
INCOME TAX

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2024, 2023 and 2022:
202420232022
Reconciliation of Federal Statutory to Actual Tax Expense: 
Federal Statutory Income Tax at 21%$48,663 $54,439 $53,692 
Tax-exempt Interest Income(17,509)(18,193)(19,349)
Non-deductible FDIC Premiums624 454 427 
Earnings on Life Insurance(1,777)(1,753)(2,344)
Tax Credits(2,018)(331)(414)
State Tax631 1,171 2,494 
Other1,712 (341)(921)
Income Tax Expense$30,326 $35,446 $33,585 
Effective Tax Rate13.1 %13.7 %13.1 %


Income tax expense consists of the following components for the years ended December 31, 2024, 2023, 2022:
 202420232022
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal$27,979 $29,351 $21,824 
State723 (504)2,696 
Deferred:
Federal1,548 4,613 8,604 
State76 1,986 461 
Income Tax Expense$30,326 $35,446 $33,585 
Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2024 and 2023:
 20242023
Deferred Tax Asset at December 31:  
Assets:  
Differences in Accounting for Credit Losses$51,186 $54,734 
Differences in Accounting for Loan Fees2,193 2,398 
Deferred Compensation3,950 4,021 
Federal & State Income Tax Loss Carryforward and Credits1,166 600 
Net Unrealized Loss on Securities Available for Sale50,084 46,161 
Other5,771 6,716 
Total Assets114,350 114,630 
Liabilities: 
Differences in Depreciation Methods8,801 7,439 
Differences in Accounting for Loans and Securities920 1,284 
Differences in Accounting for Mortgage Servicing Rights2,280 1,987 
Difference in Accounting for Pensions and Other Employee Benefits8,156 6,072 
State Income Tax1,416 1,428 
REIT Dividend Deferral677 2,979 
Other6,208 8,692 
Total Liabilities28,458 29,881 
Net Deferred Tax Asset$85,892 $84,749 


As of December 31, 2024, the Corporation has approximately $25.0 million of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2025. These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $6.7 million. Management believes it is more likely than not that the benefit of these state NOL carryforwards and other state deferred tax assets will be fully realized.

The Corporation has additional paid-in capital that is considered restricted resulting from the acquisitions of CFS Bancorp, Inc. (“CFS”) and Ameriana Bancorp, Inc. (“Ameriana”) of approximately $13.4 million and $11.9 million, respectively. CFS and Ameriana qualified as banks under provisions of the Internal Revenue Code which permitted them to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income, for which no deferred federal income tax liability has been recognized. If in the future this portion of additional paid-in capital is distributed, or the Corporation no longer qualifies as a bank for income tax purposes, federal income taxes may be imposed at the then applicable tax rate. The unrecorded deferred tax liability at December 31, 2024, would have been approximately $5.3 million.

The Corporation or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2021.

Additional details regarding the Corporation’s policies related to income taxes are discussed in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements.