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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Components of Federal and State Income Tax Expense | 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 |
Effective Income Tax Reconciliation | 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 Effects of Temporary Differences on Deferred Tax Assets and Deferred Tax Liabilities | 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.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
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