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INCOME TAX
 12 Months Ended
Dec. 31, 2023
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, 2023, 2022 and 2021:
202320222021
Reconciliation of Federal Statutory to Actual Tax Expense: 
Federal Statutory Income Tax at 21%$54,439 $53,692 $50,566 
Tax-exempt Interest Income(18,193)(19,349)(16,200)
Stock Compensation(228)(214)(20)
Earnings on Life Insurance(1,753)(2,344)(1,468)
Tax Credits(331)(414)(354)
State Tax1,171 2,494 2,697 
Other341 (280)38 
Income Tax Expense$35,446 $33,585 $35,259 
Effective Tax Rate13.7 %13.1 %14.6 %


Income tax expense consists of the following components for the years ended December 31, 2023, 2022, 2021:
 202320222021
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal$29,351 $21,824 $24,634 
State(504)2,696 1,473 
Deferred:
Federal4,613 8,604 7,211 
State1,986 461 1,941 
Income Tax Expense$35,446 $33,585 $35,259 
Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2023 and 2022:
 20232022
Deferred Tax Asset at December 31:  
Assets:  
Differences in Accounting for Credit Losses$54,734 $61,484 
Differences in Accounting for Loan Fees2,398 2,094 
Deferred Compensation4,021 3,922 
Federal & State Income Tax Loss Carryforward and Credits600 600 
Net Unrealized Loss on Securities Available for Sale46,161 62,323 
Other6,716 2,883 
Total Assets114,630 133,306 
Liabilities: 
Differences in Depreciation Methods7,439 7,039 
Differences in Accounting for Loans and Securities1,284 1,058 
Differences in Accounting for Mortgage Servicing Rights1,987 616 
Difference in Accounting for Pensions and Other Employee Benefits6,072 3,687 
State Income Tax1,428 1,859 
REIT Dividend Deferral2,979 3,088 
Other8,692 6,502 
Total Liabilities29,881 23,849 
Net Deferred Tax Asset$84,749 $109,457 


As of December 31, 2023, the Corporation has approximately $12.2 million of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2024. These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $6.8 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 Bancorp, Inc. (“CFS”) and Ameriana Bancorp, Inc. (“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, for which no deferred federal income tax liability has been recognized. 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, federal income taxes may be imposed at the then applicable tax rate. The unrecorded deferred tax liability at December 31, 2023, 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 2020.

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.