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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 18 – INCOME TAXES

The provision for income taxes (credit) consists of the following:

 

 

2024

 

 

2023

 

 

2022

 

Current expense

 

$

7,089

 

 

$

9,230

 

 

$

10,885

 

Deferred expense (benefit)

 

 

2,389

 

 

 

(464

)

 

 

1,353

 

Totals

 

$

9,478

 

 

$

8,766

 

 

$

12,238

 

Effective tax rates differ from the federal statutory rate of 21% that were applied to income before income taxes due to the following:

 

 

2024

 

 

2023

 

 

2022

 

Statutory tax

 

$

11,640

 

 

$

12,327

 

 

$

15,295

 

Effect of nontaxable interest

 

 

(1,771

)

 

 

(2,040

)

 

 

(2,591

)

Bank owned life insurance, net

 

 

(558

)

 

 

(513

)

 

 

(380

)

Tax credit investments

 

 

(565

)

 

 

(366

)

 

 

(194

)

Effect of nontaxable insurance premiums

 

 

0

 

 

 

(404

)

 

 

(318

)

Stock compensation

 

 

28

 

 

 

41

 

 

 

(63

)

Other

 

 

704

 

 

 

(279

)

 

 

489

 

Actual tax

 

$

9,478

 

 

$

8,766

 

 

$

12,238

 

 

 

Deferred tax assets (liabilities) are comprised of the following:

 

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

7,548

 

 

$

7,235

 

Net unrealized loss on securities available for sale

 

 

51,267

 

 

 

45,599

 

Net unrealized loss on swap derivative

 

 

107

 

 

 

269

 

Basis in investment securities

 

 

6,551

 

 

 

6,976

 

Purchase accounting adjustments

 

 

2,797

 

 

 

4,147

 

Deferred and accrued compensation

 

 

2,310

 

 

 

2,060

 

Nonaccrual loan interest income

 

 

358

 

 

 

659

 

Restricted stock

 

 

856

 

 

 

795

 

Lease liabilities

 

 

2,340

 

 

 

2,164

 

Other

 

 

0

 

 

 

198

 

Gross deferred tax assets

 

$

74,134

 

 

$

70,102

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

$

(1,738

)

 

$

(1,701

)

Mortgage servicing rights

 

 

(651

)

 

 

(725

)

Prepaid expenses

 

 

(45

)

 

 

(41

)

Lease right of use asset

 

 

(2,281

)

 

 

(2,116

)

Other

 

 

(783

)

 

 

0

 

Gross deferred tax liabilities

 

 

(5,498

)

 

 

(4,583

)

Net deferred tax asset

 

$

68,636

 

 

$

65,519

 

No valuation allowance for deferred tax assets was recorded at December 31, 2024 and 2023.

At December 31, 2024 and December 31, 2023, the Company had no unrecognized tax benefits recorded. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months.

The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2021. The tax years 2021—2023 remain open to examination by the U.S. taxing authority.