XML 53 R25.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Tax
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
December 31
2024		December 31
2023		December 31
2022
Income tax expense
Currently payable
Federal$8,558 $14,980 $9,111 
State363 (640)888 
Deferred
Federal(15,528)(3,393)2,208 
State(1,472)71 (31)
Total income tax expense$(8,079)$11,018 $12,176 
Reconciliation of federal statutory to actual tax expense
Federal statutory income tax at 21% $5,743 $8,190 $22,173 
Tax exempt interest(6,427)(6,777)(6,623)
Tax exempt BOLI income(273)(779)(746)
Stock compensation150 (88)(232)
Revaluation of deferred tax assets(5,201)5,201 — 
Other tax exempt income— (371)(454)
State tax, net of federal tax effect(1,185)142 676 
Tax credit investments, net of amortization(1,290)(2,976)(2,774)
BOLI redemption ordinary income— 5,316 — 
BOLI redemption excise— 2,532 — 
Nondeductible and other404 628 156 
Actual tax expense$(8,079)$11,018 $12,176 
December 31
2024		December 31
2023
Assets
Allowance for credit losses$12,590 $12,546 
Net operating loss and tax credits10,805 9,592 
Director and employee benefits3,334 2,471 
Unrealized loss on securities and cash flow hedge29,355 17,706 
Basis difference in partnership equity investments1,940 1,322 
Capital loss carryover— 5,201 
Fair value adjustment on acquisitions883 — 
Other2,938 2,856 
Total assets61,845 51,694 
Liabilities
Depreciation(4,061)(4,512)
State tax— (253)
Federal Home Loan Bank stock dividends(353)(365)
Difference in basis of intangible assets(6,553)(4,545)
Fair value adjustment on acquisitions— (2,142)
Other(1,003)(1,131)
Total liabilities(11,970)(12,948)
Valuation allowance— (5,201)
Net deferred tax asset/(liability)$49,875 $33,545 
During 2024, the Company generated a state net operating loss of $15.1 million that may be carried forward for 15 years. The Company has federal general business tax credits of $10.2 million that can be carried forward twenty years and expire beginning in 2044.

The Company accounts for qualifying investment tax credits using the proportional amortization method and all others under the deferral method. Investment tax credits totaled $7.5 million and $19.7 million for 2024 and 2023, respectively.

The Company recorded no valuation allowance as of December 31, 2024 and a valuation allowance of $5.2 million for December 31, 2023. The Company believes all of its deferred tax assets as of December 31, 2024 will be realized.

Retained earnings of the Bank include approximately $12.8 million for which no deferred income tax liability has been recognized. This amount represents an allocation of previously acquired institutions income to bad debt deductions as of December 31, 1987 for tax purposes only. Reductions of amounts so allocated for purposes other than tax bad debt losses including redemption of bank stock or excess dividends, or loss of “bank” status would create income for tax purposes only, which would be subject to the then-current corporate income tax rate. The unrecorded deferred income tax liability on the above amount for the Company was approximately $2.7 million at December 31, 2024.

The Company files income tax returns in U.S. federal, state and local jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2019.