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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
| 2024 | 2023
Allowance for credit losses | $ | 4,495 |  | $ | 4,553 |
Deferred compensation payable | 3,441 |  | 3,336 |
Accrued expenses | 2,365 |  | 2,575 |
Unrealized securities losses | 34,973 |  | 33,524 |
Other | 6,910 |  | 8,602 |
Total Deferred Tax Assets | 52,184 |  | 52,590 |
Goodwill and other intangible assets | 3,080 |  | 4,180 |
Other | 7,400 |  | 6,194 |
Total Deferred Tax Liabilities | 10,480 |  | 10,374 |
Deferred Tax Assets, net | $ | 41,704 |  | $ | 42,216 |
No material valuation allowances for deferred tax assets were recorded at December 31, 2024 or 2023 as the Company believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years. Significant components of the provision for income taxes are as follows (in thousands):
| 2024 | 2023 | 2022
Current: |  |  |
Federal | $ | 23,883 |  | $ | 27,156 |  | $ | 20,481 |
State | 3,151 |  | 4,349 |  | 3,313 |
Total current tax expense | 27,034 |  | 31,505 |  | 23,794 |
Total deferred tax expense | 381 |  | (2,764) |  | 1,469 |
Income tax expense | $ | 27,415 |  | $ | 28,741 |  | $ | 25,263 |
A reconciliation of the significant differences between the federal statutory income tax rate and the Company’s effective income tax rate is as follows (in thousands):
| 2024 | 2023 | 2022
Computed federal taxes at statutory rate | $ | 30,348 |  | $ | 30,052 |  | $ | 26,740 |
State income taxes, net of federal tax benefit | 2,577 |  | 3,225 |  | 2,871 |
Tax effects of: |  |  |
Tax-exempt interest income | (732) |  | (925) |  | (1,142) |
Bank-owned life insurance | (818) |  | (1,268) |  | (1,167) |
Income tax credits | (4,008) |  | (2,747) |  | (1,904) |
Other items, net | 48 |  | 404 |  | (135) |
Income tax expense | $ | 27,415 |  | $ | 28,741 |  | $ | 25,263 |
Effective tax rate | 19.0 | % | 20.1 | % | 19.8 | %
The entire amount of the Company’s unrecognized tax benefits, if recognized, would favorably affect the Company’s effective tax rate. The Company anticipates that it will release $0.4 million over the next 12 months. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):
| 2024 | 2023
Beginning balance | $ | 1,256 |  | $ | 1,619 |
Additions for current year tax positions | 309 |  | 230 |
Increases (decreases) for prior year tax positions | 78 |  | (44) |
Decreases related to lapse of applicable statute of limitation | (368) |  | (549) |
Ending balance | $ | 1,275 |  | $ | 1,256 |
Interest and penalties on income tax uncertainties are included in income tax expense. During 2024, 2023 and 2022, the provision related to interest and penalties was not material in any period. The balance of accrued interest and penalties at December 31, 2024 and 2023 was approximately $1.0 million. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and various state taxing authorities for the years ended December 31, 2021 and forward.

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