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Income Tax
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Tax
INCOME TAX

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2021, 2020 and 2019:
202120202019
Reconciliation of Federal Statutory to Actual Tax Expense: 
Federal Statutory Income Tax at 21%$50,566 $35,695 $40,695 
Tax-exempt Interest Income(16,200)(13,273)(10,124)
Stock Compensation(20)338 (459)
Earnings on Life Insurance(1,468)(1,079)(953)
Tax Credits(354)(425)(263)
CARES Act - NOL carryback rate differential— (1,178)— 
State Tax2,697 1,122 600 
Other38 175 (171)
Income Tax Expense$35,259 $21,375 $29,325 
Effective Tax Rate14.6 %12.6 %15.1 %


Income tax expense consists of the following components for the years ended December 31, 2021, 2020, 2019:
 202120202019
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal$24,634 $28,463 $23,938 
State1,473 2,647 422 
Deferred:
Federal7,211 (8,508)4,726 
State1,941 (1,227)239 
Income Tax Expense$35,259 $21,375 $29,325 


Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2021 and 2020:
 20212020
Deferred Tax Asset at December 31:  
Assets:  
Differences in Accounting for Loan Losses$52,995 $31,850 
Differences in Accounting for Loan Fees2,016 4,328 
Deferred Compensation4,172 4,038 
Federal & State Income Tax Loss Carryforward and Credits747 2,089 
Other3,585 3,185 
Total Assets63,515 45,490 
Liabilities:  
Differences in Depreciation Methods5,726 6,028 
Differences in Accounting for Loans and Securities3,078 2,840 
Difference in Accounting for Pensions and Other Employee Benefits4,586 1,258 
State Income Tax1,499 1,059 
Net Unrealized Gain on Securities Available for Sale15,889 23,389 
Gain on FDIC Modified Whole Bank Transaction306 359 
Other8,108 6,209 
Total Liabilities39,192 41,142 
Net Deferred Tax Asset$24,323 $4,348 
As of December 31, 2021, the Corporation has approximately $15.2 million of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2023. These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $7.1 million. Management believes it is more likely than not that the benefit of these state NOL carryforwards and other state deferred tax assets will be fully realized.

The Corporation has additional paid-in capital that is considered restricted resulting from the acquisitions of CFS and Ameriana of approximately $13.4 million and $11.9 million, respectively. CFS and Ameriana qualified as banks under provisions of the Internal Revenue Code which permitted them to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income. No provision for income taxes had been provided. If in the future this portion of additional paid-in capital is distributed, or the Corporation no longer qualifies as a bank for income tax purposes, income taxes may be imposed at the then applicable tax rates. The unrecorded deferred tax liability at December 31, 2021, would have been approximately $5.3 million.

The Corporation or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions.  The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2018.

Additional details regarding the Corporation's policies related to income taxes are discussed in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements.