XML 43 R23.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 components of income tax expense were as follows:
(In thousands)202420232022
Current:  
Federal$6,780 $7,924 $7,461 
State1,014 755 1,259 
Total7,794 8,679 8,720 
Deferred:  
Federal806 (534)592 
State(27)16 (113)
Total779 (518)479 
Provision for income taxes$8,573 $8,161 $9,199 
The differences between the ETR and the federal statutory income tax rate are as follows:
 202420232022
Federal income tax at statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit1.9 1.5 1.8 
Tax-exempt income(1.0)(1.3)(1.1)
Earnings on investment in bank-owned life insurance(1.0)(1.0)(0.7)
Tax credit benefits— — (0.6)
Nondeductible merger-related costs0.7 — — 
Other(0.4)0.3 0.1 
  Effective income tax rate21.2 %20.5 %20.5 %
The net deferred tax asset recorded by the Corporation is included in other assets and consists of the following tax effects of temporary differences as of December 31:
(In thousands)20242023
Deferred tax assets:  
Investment securities available for sale$11,178 $12,052 
Allowance for credit losses3,909 4,533 
Accrued deferred compensation1,436 1,166 
Deferred director fees1,153 1,097 
Defined benefit pension plan1,031 1,162 
Other837 783 
Lease liability592 742 
Allowance for unfunded commitments315 390 
Nonaccrual interest246 740 
Accumulated depreciation59 3 
Total gross deferred tax assets20,756 22,668 
Deferred tax liabilities:  
Prepaid defined benefit pension plan cost4,729 4,552 
Goodwill and intangible assets, net1,449 1,439 
Right of use asset592 742 
Prepaid expenses50 67 
Purchase accounting25 25 
Deferred loan fees(46)57 
Total gross deferred tax liabilities6,799 6,882 
Net deferred tax asset$13,957 $15,786 
The Corporation follows accounting guidance related to accounting for uncertainty in income taxes. Under the “more likely than not” threshold guidelines, the Corporation believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Corporation did not have any material uncertain tax positions at December 31, 2024 or 2023. The Corporation’s policy is to recognize interest and penalties as a discrete item in income tax expense in the Consolidated Statements of Income.
The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the states for which income is derived. The Corporation is no longer subject to examination by taxing authorities for years before 2020.