XML 41 R22.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following is a summary of income tax expense for the years ended December 31, 2024, 2023, and 2022:

December 31, 2024December 31, 2023December 31, 2022
Current – federal$12,863 $11,446 $15,494 
Current – state1,104 1,252 1,346 
Deferred – federal(1,124)1,110 (1,618)
Deferred – state(59)1 (196)
Income tax expense$12,784 $13,809 $15,026 

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

December 31, 2024%December 31, 2023%December 31, 2022%
Tax at statutory rate$14,146 21.0 %$15,084 21.0 %$16,425 21.0 %
Tax exempt income, net(1,139)(1.7)(1,090)(1.5)(1,036)(1.3)
Bank owned life insurance(653)(1.0)(619)(0.9)(721)(0.9)
Tax credits, net of amortization(160)(0.2)(173)(0.3)(193)(0.3)
Effect of state tax826 1.2 990 1.4 908 1.2 
Other(236)(0.4)(383)(0.5)(357)(0.5)
Income tax expense$12,784 18.9 %$13,809 19.2 %$15,026 19.2 %
The following table sets forth deferred taxes as of December 31, 2024 and 2023:

December 31, 2024December 31, 2023
Deferred tax assets:
Allowance for credit losses$10,895 $10,515 
Fair value adjustments – business combination685 771 
Deferred compensation4,026 3,693 
Net operating loss carryover493 516 
Post-retirement benefits509 605 
Unrealized loss on equity securities197 129 
Nonaccrual loan interest563 476 
Accrued expenses609 579 
Deferred fees and costs25 557 
Unrealized loss on securities available-for-sale10,852 11,308 
Unrealized loss on securities held-to-maturity963 1,108 
Lease liability12,360 8,509 
Other547 453 
42,724 39,219 
Deferred tax liabilities:
Premises and equipment3,054 3,761 
Intangibles – section 1972,475 2,487 
Mortgage servicing rights278 345 
Lease asset11,839 8,128 
Other633 571 
18,279 15,292 
Net deferred tax asset$24,445 $23,927 

At December 31, 2024 and 2023, the Corporation had no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

At December 31, 2024, the Corporation had state net operating loss carryforwards of $14.8 million related to the acquisition of Bank of Akron, which will expire at various dates from 2034 to 2039. The Corporation's ability to utilize carryforwards is limited to $363 thousand per year. Due to this limitation, management has determined it is more likely than not that approximately $9.5 million of net operating loss carryforwards will expire unutilized.

The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2024, 2023, and 2022, there were no amounts accrued for interest and/or penalties and no amounts recorded as expense for the years ending December 31, 2024, 2023, and 2022.

The Corporation and its subsidiaries are subject to U.S. federal income tax, as well as filing various state returns. The Corporation is no longer subject to U.S. federal income tax examinations by the taxing authorities for years prior to 2021. Tax years 2021 through 2024 are open to examination.