XML 42 R27.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 current and deferred components of income tax expense on the consolidated statements of income were as follows:
|  | For the Year Ended December 31,
(In thousands) |  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | 11,047 |  |  | $ | 7,990 |  |  | $ | 12,334 |
State |  | 1,111 |  |  | 1,156 |  |  | 1,489 |
Total |  | 12,158 |  |  | 9,146 |  |  | 13,823 |
Deferred: |  |  |  |  |  |
Federal |  | 291 |  |  | 1,277 |  |  | 1,743 |
State |  | 7 |  |  | 30 |  |  | 42 |
Total |  | 298 |  |  | 1,307 |  |  | 1,785 |
Income tax expense |  | $ | 12,456 |  |  | $ | 10,453 |  |  | $ | 15,608 |
The income tax expense differs from the amount computed by applying the statutory federal income tax rate of 21.0% as a result of the following:
|  | For the Year Ended December 31,
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2022
Computed tax expense |  | $ | 13,747 |  |  | $ | 11,306 |  |  | $ | 16,180 |
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |
Tax credit benefits |  | (1,699) |  |  | (831) |  |  | (846) |
State taxes, net of federal benefit |  | 1,099 |  |  | 937 |  |  | 1,209 |
Income from life insurance |  | (589) |  |  | (493) |  |  | (399) |
Tax exempt income |  | (451) |  |  | (647) |  |  | (732) |
Merger and acquisition costs |  | 232 |  |  | — |  |  | — |
Share-based awards |  | 98 |  |  | 69 |  |  | (100) |
Other |  | 19 |  |  | 112 |  |  | 296 |
Income tax expense |  | $ | 12,456 |  |  | $ | 10,453 |  |  | $ | 15,608 |
Income before income tax expense |  | $ | 65,460 |  |  | $ | 53,836 |  |  | $ | 77,047 |
Effective tax rate |  | 19.0 | % |  | 19.4 | % |  | 20.3 | %
Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of the dates indicated:
|  | December 31,
|  | 2024 |  | 2023
(In thousands) |  | Asset |  | Liability |  | Asset |  | Liability
Net unrealized losses on AFS debt securities |  | $ | 28,488 |  |  | $ | — |  |  | $ | 29,418 |  |  | $ | — |
Allowance for credit losses |  | 8,285 |  |  | — |  |  | 8,447 |  |  | — |
Net operating loss and tax credit carryforward |  | 6,255 |  |  | — |  |  | 7,084 |  |  | — |
Pension and other benefits |  | 4,319 |  |  | — |  |  | 4,656 |  |  | — |
Deferred compensation and benefits |  | 1,161 |  |  | — |  |  | 1,033 |  |  | — |
Deferred loan origination fees |  | — |  |  | (3,152) |  |  | — |  |  | (3,235) |
Depreciation |  | — |  |  | (2,352) |  |  | — |  |  | (2,359) |
Net unrealized gains on derivative instruments |  | — |  |  | (2,454) |  |  | — |  |  | (1,670) |
Other |  | — |  |  | (513) |  |  | — |  |  | (1,148) |
Gross deferred tax assets (liabilities) |  | $ | 48,508 |  |  | (8,471) |  |  | $ | 50,638 |  |  | (8,412) |
Valuation allowance on deferred tax assets |  |  |  | — |  |  |  |  | — |
Net deferred tax assets |  |  |  | $ | 40,037 |  |  |  |  | $ | 42,226 |
At December 31, 2024 and 2023, the Company had $28.9 million and $32.8 million, respectively, in unused federal net operating losses that were acquired in 2015. Due to Internal Revenue Code Section 382(g) limitations, the Company's use of the federal net operating losses acquired is limited to $3.9 million annually, which was determined using the applicable federal rate and the fair value of consideration paid for the acquisition at the acquisition date. The acquired federal net operating losses will expire between 2030 and 2034. The Company expects that it will be able to fully utilize the acquired allowable federal net operating losses prior to expiration, as the Company has a history of generating taxable income well in excess of the limitation. The Company continuously monitors and assesses the need for a valuation allowance on its deferred tax assets and, at December 31, 2024 and 2023 determined that no valuation allowance was necessary. As of December 31, 2024, the Company's federal and state income tax returns for the years ended December 31, 2023, 2022 and 2021 were open to audit by federal and state authorities. Renewable Energy Credits As of December 31, 2024 and 2023, the Company had $315,000 and $509,000, respectively, of qualifying renewable energy tax credit investments that were unamortized and were included in other assets on the consolidated statements of condition. The following table presents the activity recorded in income tax expense on the consolidated statements of income for the investments the Company accounts for under the proportional amortization method:
|  | For the Year Ended December 31,
(In thousands) |  | 2024 |  | 2023
Proportional amortization |  | $ | 5,908 |  |  | $ | — |
Income tax credits and other income tax benefits(1) |  | 6,525 |  |  | — |
Net income tax benefit |  | $ | 617 |  |  | $ | — |
(1) Other income tax benefits are a result of tax deductible expenses generated by the renewable energy tax credit investments and are recognized in the consolidated statements of cash flows in other assets within the operating activities section.

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