INCOME TAXES: (Tables)

12 Months Ended

Dec. 31, 2021

Income tax expense is summarized as follows:


(Dollar amounts in thousands)	2021		2020		2019
Federal:
Currently payable	$	7,978	$	7,886	$	7,118
Deferred	1,488		1,188		2,435

	9,466		9,074		9,553
State:
Currently payable	3,080		2,422		2,168
Deferred	80		196		406
	3,160		2,618		2,574
TOTAL	$	12,626	$	11,692	$	12,127

Reconciliation of Income Tax Expense

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)	2021		2020		2019
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 benefit	2,496		2,068		2,034
General business tax credits	(716)		(1,648)		(148)

Other, net	(87)		250		97
TOTAL	$	12,626	$	11,692	$	12,127

Schedule of Deferred Tax Assets and Liabilities

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)	2021		2020
Deferred tax assets:
Other than temporary impairment	$	764	$	753
Net unrealized losses on retirement plans	6,033		8,132

Loan loss provisions	12,476		12,150
Unfunded commitments	764		—
Deferred compensation	2,367		2,496
Compensated absences	739		623
Post-retirement benefits	1,284		1,286
Lease liability	1,597		1,450
Purchase accounting	1,333		1,060
Deferred loss on acquisition	—		—
Other	2,770		2,186
GROSS DEFERRED ASSETS	30,127		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

Reconciliation of Unrecognized Tax Benefits

Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(Dollar amounts in thousands)	2021		2020		2019
Balance at January 1	$	867	$	825	$	922
Additions based on tax positions related to the current year	9		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