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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
INCOME TAXES  
Schedule of Components of Income Tax Expense (Benefit)

(in thousands)

    

2022

    

2021

    

2020

Current:

 

  

 

  

 

  

Federal tax expense

$

10,444

$

7,796

$

7,165

State tax expense

 

1,551

 

1,106

 

1,280

Total current tax expense

 

11,995

 

8,902

 

8,445

Deferred tax (benefit) expense

 

(707)

 

427

 

(38)

Total income tax expense

$

11,288

$

9,329

$

8,407

Schedule of Effective Income Tax Rate Reconciliation

2022

2021

2020

 

(in thousands, except ratios)

Amount

Rate

Amount

Rate

Amount

Rate

 

Statutory tax rate

    

$

11,517

    

21.00

%  

$

10,210

    

21.00

%  

$

8,747

    

21.00

%  

Increase (decrease) resulting from:

 

  

 

 

  

 

 

  

 

 

State taxes, net of federal benefit

 

1,477

 

2.69

 

1,280

 

2.63

 

1,120

 

2.69

 

Tax exempt interest

 

(1,003)

 

(1.83)

 

(1,240)

 

(2.55)

 

(1,301)

 

(3.12)

 

Federal tax credits

 

(241)

 

(0.44)

 

(582)

 

(1.20)

 

(330)

 

(0.79)

 

Officers' life insurance

 

(498)

 

(0.91)

 

(466)

 

(0.96)

 

(403)

 

(0.97)

 

Gain on disposal of low income housing tax credit investments

 

 

 

 

 

147

 

0.35

 

Stock-based compensation plans

 

(16)

 

(0.03)

 

(73)

 

(0.15)

 

52

 

0.12

 

Other

 

52

 

0.10

 

200

 

0.42

 

375

 

0.90

 

Effective tax rate

$

11,288

 

20.58

%  

$

9,329

 

19.19

%  

$

8,407

 

20.18

%  

Schedule of Deferred Tax Assets and Liabilities

2022

2021

(in thousands)

Assets

Liabilities

Assets

Liabilities

Allowance for credit losses

    

$

5,964

    

$

    

$

5,214

    

$

Deferred compensation

 

3,812

 

 

3,965

 

Unrealized gain or loss on securities available for sale

 

16,586

 

 

 

1,055

Unrealized gain or loss on derivatives

 

539

 

 

201

 

Depreciation

 

 

1,723

 

 

2,033

Deferred loan origination fees, net

 

129

 

 

432

 

Non-accrual interest

 

600

 

 

593

 

Branch acquisition costs and goodwill

 

 

1,644

 

 

1,326

Core deposit intangible

 

 

806

 

 

929

Acquisition fair value adjustments

 

213

 

 

208

 

Prepaid expenses

 

 

271

 

 

205

Mortgage servicing rights

 

 

780

 

 

843

Equity compensation

 

736

 

 

668

 

Prepaid pension

 

 

616

 

 

739

Contract incentives

 

766

 

 

820

 

Right of use asset

 

 

1,863

 

 

2,129

Lease liability

 

1,961

 

 

2,213

 

Other

 

839

 

 

492

 

Total

$

32,145

$

7,703

$

14,806

$

9,259