XML 36 R21.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense for the years ended December 31, 2023, 2022 and 2021 consisted of the following:
(dollars in thousands) | 2023 |  | 2022 |  | 2021
Current federal | $ | 16,171 |  |  | $ | 22,825 |  |  | $ | 21,329 |
Deferred federal | 1,302 |  |  | (2,327) |  |  | (1,249) |
Current state | (131) |  |  | 1,297 |  |  | 1,892 |
Deferred state | (776) |  |  | (448) |  |  | (261) |
Total income tax expense | $ | 16,566 |  |  | $ | 21,347 |  |  | $ | 21,711 |
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) | 2023 |  | 2022 |  | 2021
Income taxes at statutory federal rate of 21% | $ | 23,170 |  |  | $ | 26,284 |  |  | $ | 24,663 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
Tax exempt income | (4,226) |  |  | (4,438) |  |  | (2,822) |
Nondeductible expense | 269 |  |  | 159 |  |  | 116 |
State income tax, net of federal tax effect | (716) |  |  | 671 |  |  | 1,288 |
Captive insurance premium income | (261) |  |  | (417) |  |  | (303) |
Tax credits | (713) |  |  | (586) |  |  | (578) |
Bank owned life insurance | (658) |  |  | (78) |  |  | (596) |
Long-term incentive plan and deferred compensation | (715) |  |  | (530) |  |  | (274) |
Nondeductible compensation expense | 784 |  |  | 181 |  |  | 156 |
Other | (368) |  |  | 101 |  |  | 61 |
Total income tax expense | $ | 16,566 |  |  | $ | 21,347 |  |  | $ | 21,711 |
NOTE 12 – INCOME TAXES (continued) The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2023 and 2022 consisted of the following:
(dollars in thousands) | 2023 |  | 2022
Deferred tax assets: |  |  |
Bad debts | $ | 18,384 |  |  | $ | 18,561 |
Pension and deferred compensation liability | 1,823 |  |  | 2,272 |
Nonaccrual loan interest | 494 |  |  | 256 |
Long-term incentive plan | 2,342 |  |  | 2,894 |
Lease liability | 1,199 |  |  | 1,354 |
Deferred loan fees | 781 |  |  | 572 |
Accrued legal reserve | 635 |  |  | 819 |
Net operating loss carryforward | 913 |  |  | 0 |
Other | 591 |  |  | 1,130 |
| 27,162 |  |  | 27,858 |
Deferred tax liabilities: |  |  |
Depreciation | 3,645 |  |  | 4,257 |
Loan servicing rights | 570 |  |  | 694 |
State taxes | 949 |  |  | 786 |
Intangible assets | 1,270 |  |  | 1,270 |
REIT spillover dividend | 2,140 |  |  | 1,290 |
Prepaid expenses | 801 |  |  | 988 |
Lease right of use | 1,199 |  |  | 1,354 |
Other | 480 |  |  | 585 |
| 11,054 |  |  | 11,224 |
Valuation allowance | 0 |  |  | 0 |
Net deferred tax asset | $ | 16,108 |  |  | $ | 16,634 |
At December 31, 2023, the Company has Indiana net operating loss carryforwards of approximately $20.0 million that will expire in 2038 if not used. Management has concluded that the state net operating losses will be fully utilized and therefore no valuation allowance is necessary on the state net operating loss. In addition to the net deferred tax assets included above, the deferred income tax asset (liability) allocated to the unrealized net gain (loss) on securities available-for-sale included in equity was $41.1 million and $50.0 million for 2023 and 2022, respectively. The deferred income tax asset allocated to the pension plan and SERP included in equity was $243,000 and $255,000 for 2023 and 2022, respectively. The Company evaluated its deferred tax asset at year end 2023 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, 2023 or 2022. 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, 2023, 2022 and 2021. 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 2019.

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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration