Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES

v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
INCOME TAXES
Note 13
 
INCOME TAXES
The provision for income taxes reflected in the Consolidated Statements of Comprehensive
 
Income is comprised of the following
components:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2024
2023
2022
Current:
Federal
$
13,388
$
11,630
$
10,646
State
1,568
1,893
1,022
14,956
13,523
11,668
Deferred:
Federal
(877)
(391)
(2,994)
State
(116)
(351)
(899)
Change in Valuation
 
Allowance
(39)
259
23
(1,032)
(483)
(3,870)
Total:
Federal
12,511
11,239
7,652
State
1,452
1,542
123
Change in Valuation
 
Allowance
(39)
259
23
Total
$
13,924
$
13,040
$
7,798
Income taxes provided were different than the tax expense
 
computed by applying the statutory federal income tax rate of
21
% to
pre-tax income as a result of the following:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2024
2023
2022
Tax Expense at Federal
 
Statutory Rate
$
13,769
$
13,411
$
8,625
Increases (Decreases) Resulting From:
Tax-Exempt Interest
 
Income
(161)
(259)
(248)
Other
(929)
(1,695)
(546)
State Taxes, Net of Federal
 
Benefit
1,145
1,218
94
Change in Valuation
 
Allowance
(39)
259
23
Tax-Exempt Cash Surrender
 
Value
 
Life Insurance Benefit
(201)
(187)
(175)
Noncontrolling Interest
340
293
25
Actual Tax Expense
$
13,924
$
13,040
$
7,798
Deferred income tax liabilities and assets result from differences between
 
assets and liabilities measured for financial reporting
purposes and for income tax return purposes.
 
These assets and liabilities are measured using the enacted tax rates and laws that
are currently in effect.
 
The net deferred tax asset and the temporary differences comprising
 
that balance at December 31, 2024 and 2023 are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2024
2023
Deferred Tax Assets Attributable
 
to:
Allowance for Credit Losses
$
7,168
$
7,236
Accrued Pension/SERP
-
144
State Net Operating Loss and Tax
 
Credit Carry-Forwards
1,976
2,069
Other Real Estate Owned
964
887
Accrued SERP Liability
2,548
2,594
Lease Liability
5,639
5,911
Net Unrealized Losses on Investment Securities
6,779
8,601
Other
2,808
2,665
Investment in Partnership
4,404
3,241
Total Deferred
 
Tax Assets
$
32,286
$
33,348
Deferred Tax Liabilities
 
Attributable to:
Depreciation on Premises and Equipment
$
3,538
$
3,733
Deferred Loan Fees and Costs
3,543
2,614
Intangible Assets
3,378
3,344
Accrued Pension/SERP
3,302
-
Accrued Pension Liability
1,217
1,688
Right of Use Asset
5,510
5,829
Investments
469
469
Other
1,784
1,851
Total Deferred
 
Tax Liabilities
22,741
19,528
Valuation
 
Allowance
1,891
1,930
Net Deferred Tax Asset
$
7,654
$
11,890
In the opinion of management, it is more likely than not that all of the deferred tax
 
assets, with the exception of certain state net
operating loss carry-forwards and certain state tax credit carry-forwards expected
 
to expire prior to utilization, will be realized.
 
Accordingly, a valuation
 
allowance of $
1.9
 
million is recorded at December 31, 2024 and December 31, 2023.
 
At December 31,
2024, the Company had state loss and tax credit carry-forwards of approximately
 
$
2.0
 
million, which expire at various dates from
2025
 
through
2037
.
The following table presents a reconciliation of the beginning and ending amount
 
of unrecognized tax benefits:.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2024
2023
2022
Balance at January 1,
$
233
$
136
$
52
Additions Based on Tax
 
Positions Related to Current Year
83
97
84
Balance at December 31
$
316
$
233
$
136
Of this total, $
0.3
 
million represents the amount of unrecognized tax benefits that, if recognized, would favorably
 
affect the
effective tax rate in future periods. The Company does not
 
expect the total amount of unrecognized tax benefits to significantly
increase or decrease in the next 12 months.
 
It is the Company’s policy to recognize
 
interest and penalties accrued relative to unrecognized tax benefits in their respective
federal or state income taxes accounts.
 
There were
no
 
penalties and interest related to income taxes recorded in the Consolidated
Statements of Income for the years ended December 31, 2024, 2023,
 
and 2022.
 
There were
no
 
amounts accrued in the
Consolidated Statements of Financial Condition for penalties and interest
 
as of December 31, 2024 and 2023.
The Company files a consolidated U.S. federal income tax return and a
 
separate U.S. federal income tax return for CCHL. Each
subsidiary files various returns in states where its banking offices are
 
located.
 
The Company is generally no longer subject to
U.S. federal or state tax examinations for years before 2021.