XML 35 R22.htm IDEA: XBRL DOCUMENT
v3.22.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense for the years ended December 31, 2021, 2020 and 2019 consisted of the following:
(dollars in thousands) | 2021 |  | 2020 |  | 2019
Current federal | $ | 21,329 |  |  | $ | 20,032 |  |  | $ | 19,430 |
Deferred federal | (1,249) |  |  | (1,688) |  |  | (408) |
Current state | 1,892 |  |  | 1,484 |  |  | 1,394 |
Deferred state | (261) |  |  | (289) |  |  | (78) |
Total income tax expense | $ | 21,711 |  |  | $ | 19,539 |  |  | $ | 20,338 |
The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:
(dollars in thousands) | 2021 |  | 2020 |  | 2019
Income taxes at statutory federal rate of 21% | $ | 24,663 |  |  | $ | 21,814 |  |  | $ | 22,551 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
Tax exempt income | (2,822) |  |  | (1,925) |  |  | (1,682) |
Nondeductible expense | 116 |  |  | 117 |  |  | 194 |
State income tax, net of federal tax effect | 1,288 |  |  | 944 |  |  | 1,040 |
Captive insurance premium income | (303) |  |  | (227) |  |  | (310) |
Tax credits | (578) |  |  | (540) |  |  | (548) |
Bank owned life insurance | (596) |  |  | (595) |  |  | (573) |
Long-term incentive plan | (274) |  |  | (58) |  |  | (421) |
Nondeductible compensation expense | 156 |  |  | 0 |  |  | 0 |
Other | 61 |  |  | 9 |  |  | 87 |
Total income tax expense | $ | 21,711 |  |  | $ | 19,539 |  |  | $ | 20,338 |
NOTE 13 – INCOME TAXES (continued) The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2021 and 2020 consisted of the following:
(dollars in thousands) | 2021 |  | 2020
Deferred tax assets: |  |  |
Bad debts | $ | 17,321 |  |  | $ | 15,634 |
Pension and deferred compensation liability | 2,351 |  |  | 2,006 |
Nonaccrual loan interest | 600 |  |  | 892 |
Long-term incentive plan | 1,896 |  |  | 1,212 |
Lease liability | 1,078 |  |  | 1,190 |
Deferred loan fees | 771 |  |  | — |
Other | 191 |  |  | 745 |
| 24,208 |  |  | 21,679 |
Deferred tax liabilities: |  |  |
Depreciation | 4,279 |  |  | 4,718 |
Loan servicing rights | 717 |  |  | 1,162 |
State taxes | 679 |  |  | 524 |
Intangible assets | 1,270 |  |  | 1,265 |
REIT spillover dividend | 1,180 |  |  | 1,180 |
Prepaid expenses | 952 |  |  | 948 |
Lease right of use | 1,078 |  |  | 1,190 |
Other | 194 |  |  | 442 |
| 10,349 |  |  | 11,429 |
Valuation allowance | 0 |  |  | 0 |
Net deferred tax asset | $ | 13,859 |  |  | $ | 10,250 |
In addition to the net deferred tax assets included above, the deferred income tax liability allocated to the unrealized net gain on securities available-for-sale included in equity was ($4.5 million) and ($7.8 million) for 2021 and 2020, respectively. The deferred income tax asset allocated to the pension plan and SERP included in equity was $319,000 and $476,000 for 2021 and 2020, respectively. The Company evaluated its deferred tax asset at year end 2021 and has concluded that it is more likely than not that it will be realized. The Company expects to have taxable income in the future such that the deferred tax asset will be realized. Therefore, no valuation allowance is required. Unrecognized Tax Benefits The Company did not have any unrecognized tax benefits at December 31, 2021 or 2020. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No interest or penalties were recorded in the income statement and no amount was accrued for interest and penalties for the periods ending December 31, 2021, 2020 and 2019. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in its income taxes accounts. The Company and its subsidiaries file a consolidated U.S. federal tax return and a combined unitary return in the States of Indiana and Michigan. These returns are subject to examinations by authorities for all years after 2017.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration