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INCOME TAXES:
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES:
 Income tax expense is summarized as follows:
(Dollar amounts in thousands)202120202019
Federal:   
Currently payable$7,978 $7,886 $7,118 
Deferred1,488 1,188 2,435 
 9,466 9,074 9,553 
State:   
Currently payable3,080 2,422 2,168 
Deferred80 196 406 
 3,160 2,618 2,574 
TOTAL$12,626 $11,692 $12,127 
 
The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized as follows:
(Dollar amounts in thousands)202120202019
Federal income taxes computed at the statutory rate$13,779 $13,763 $12,810 
Add (deduct) tax effect of:   
Tax exempt income(2,745)(2,643)(2,551)
ESOP dividend deduction(101)(98)(115)
State tax, net of federal benefit2,496 2,068 2,034 
General business tax credits(716)(1,648)(148)
Other, net(87)250 97 
TOTAL$12,626 $11,692 $12,127 
 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2021 and 2020, are as follows:
(Dollar amounts in thousands)20212020
Deferred tax assets:  
Other than temporary impairment$764 $753 
Net unrealized losses on retirement plans6,033 8,132 
Loan loss provisions12,476 12,150 
Unfunded commitments764 — 
Deferred compensation2,367 2,496 
Compensated absences739 623 
Post-retirement benefits1,284 1,286 
Lease liability1,597 1,450 
Purchase accounting1,333 1,060 
Deferred loss on acquisition— — 
Other2,770 2,186 
GROSS DEFERRED ASSETS30,127 30,136 
Deferred tax liabilities: 
Net unrealized gains on securities available-for-sale(4,269)(8,752)
Depreciation(1,611)(2,155)
Mortgage servicing rights(515)(390)
Pensions(1,647)(843)
Right-of-use asset(1,591)(1,446)
Intangibles(5,717)(5,458)
FHLB stock dividends(32)(111)
Other(4,113)(3,963)
GROSS DEFERRED LIABILITIES(19,495)(23,118)
NET DEFERRED TAX ASSETS$10,632 $7,018 

Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(Dollar amounts in thousands)202120202019
Balance at January 1$867 $825 $922 
Additions based on tax positions related to the current year9 114 298 
Additions based on tax positions related to prior years— — — 
Reductions due to the statute of limitations(68)(72)(395)
Balance at December 31$808 $867 $825 
 
Of this total, $808 thousand represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next 12 months.

The total amount of interest and penalties recorded in the income statement for the years ended December 31, 2021, 2020 and 2019 was an expense increase of $21 thousand, an increase of $11 thousand, and an decrease of $9 thousand, respectively. The amount accrued for interest and penalties at December 31, 2021, 2020 and 2019 was $85 thousand, $64 thousand and $53 thousand, respectively.
 
The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the states of Indiana and Illinois. The Corporation is no longer subject to examination by taxing authorities for years before 2018.