XML 38 R28.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 15 -- Income Taxes The components of federal and state income tax expense for the years ended December 31, 2024, 2023, and 2022 were as follows (in thousands):
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 18,504 |  |  | $ | 2,189 |  |  | $ | 14,401 |
State |  |  | 6,404 |  |  |  | 542 |  |  |  | 6,171 |
Total current |  |  | 24,908 |  |  |  | 2,731 |  |  |  | 20,572 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  |  | (2,497 | ) |  |  | 12,585 |  |  |  | (2,005 | )
State |  |  | 3,087 |  |  |  | 4,154 |  |  |  | (227 | )
Total deferred |  |  | 590 |  |  |  | 16,739 |  |  |  | (2,232 | )
Total |  | $ | 25,498 |  |  | $ | 19,470 |  |  | $ | 18,340 |
Recorded income tax expense differs from the expected tax expense (computed by applying the applicable statutory U.S. federal tax rate of 21% to income before income taxes). The principal reasons for the difference are as follows (in thousands):
|  | 2024 |  |  | 2023 |  |  | 2022 |
Expected income taxes |  | $ | 21,923 |  |  | $ | 18,565 |  |  | $ | 19,172 |
Effects of: |  |  |  |  |  |  |  |  |
Tax-exempt income from bank owned life insurance |  |  | (994 | ) |  |  | (1,035 | ) |  |  | (659 | )
Other tax exempt income |  |  | (2,397 | ) |  |  | (2,416 | ) |  |  | (2,497 | )
Nondeductible interest expense |  |  | 307 |  |  |  | 799 |  |  |  | 255 |
State taxes, net of federal taxes |  |  | 4,917 |  |  |  | 3,710 |  |  |  | 4,695 |
Other items |  |  | (839 | ) |  |  | (153 | ) |  |  | (2,525 | )
Effect of marginal tax rate |  |  | 2,581 |  |  |  | — |  |  |  | (101 | )
Total |  | $ | 25,498 |  |  | $ | 19,470 |  |  | $ | 18,340 |
Tax expense recorded by the Company for the years ended December 31, 2024, 2023, and 2022 included interest or penalties of approximately $213,000, $307,000 and $2,000, respectively. Tax returns filed with the Internal Revenue Service, Illinois Department of Revenue and various other state jurisdictions are subject to review by law under a three-year statute of limitations. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2021. The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 are presented below (in thousands):
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Allowance for credit losses |  | $ | 18,588 |  |  | $ | 18,955 |
Available-for-sale investment securities |  |  | 49,082 |  |  |  | 55,722 |
Deferred compensation |  |  | 4,377 |  |  |  | 4,128 |
Supplemental retirement |  |  | 512 |  |  |  | 519 |
Deferred loan costs |  |  | 462 |  |  |  | 222 |
Stock compensation expense |  |  | 80 |  |  |  | 82 |
Deferred revenue |  |  | 211 |  |  |  | 283 |
Purchase accounting |  |  | — |  |  |  | 5,326 |
Acquisition costs |  |  | 112 |  |  |  | 152 |
Lease liability |  |  | 3,743 |  |  |  | 3,975 |
Other |  |  | 3,623 |  |  |  | 1,305 |
Total gross deferred tax assets |  |  | 80,790 |  |  |  | 90,669 |
Less valuation allowance |  |  | (682 | ) |  |  | (988 | )
Net deferred tax asset |  |  | 80,108 |  |  |  | 89,681 |
Deferred tax liabilities: |  |  |  |  |  |
Intangibles amortization |  |  | 5,378 |  |  |  | 6,432 |
Prepaid expenses |  |  | 2,023 |  |  |  | 1,576 |
FHLB stock dividend |  |  | 21 |  |  |  | 22 |
Deferred expenses |  |  | 100 |  |  |  | 104 |
Purchase accounting |  |  | 1,854 |  |  |  | — |
Depreciation |  |  | 4,517 |  |  |  | 5,367 |
Accumulated accretion |  |  | 222 |  |  |  | 244 |
Mortgage servicing rights |  |  | 1,485 |  |  |  | 1,874 |
Right of use asset |  |  | 3,657 |  |  |  | 3,891 |
Other |  |  | 1,265 |  |  |  | 104 |
Total gross deferred tax liabilities |  |  | 20,522 |  |  |  | 19,614 |
Deferred tax assets, net |  | $ | 59,586 |  |  | $ | 70,067 |
In assessing the ability of the Company to realize the benefit of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based upon the level of historical taxable income and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient taxable income to realize the benefits of these deductible differences at December 31, 2024 and 2023, except for a valuation allowance of $682,000 and $988,000, respectively, on the net deferred tax asset related to capital losses generated. In assessing the need for a valuation allowance for the deferred tax assets for the capital loss carryforward, the Company considered all positive and negative evidence in assessing whether the weight of available evidence supports the recognition of some or all of the deferred tax assets related to these carryforwards. The Company may not be able to generate capital gains in the future to be able to utilize the capital losses. Therefore, the Company’s assessment of the deferred tax asset warrants the need for a valuation allowance.

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 tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: 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/1943274/2147477891/740-270-50-1 Reference 6: 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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: 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 11: 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 12: 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 13: 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 14: 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