INCOME TAXES |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Income Taxes [Abstract] | |
| INCOME TAXES |
Note 13
INCOME TAXES
The provision for income taxes reflected in the Consolidated Statements of Comprehensive
components:
(Dollars in Thousands)
2025
2024
2023
Current:
Federal
$
16,482
$
13,388
$
11,630
State
2,089
1,568
1,893
18,571
14,956
13,523
Deferred:
Federal
1,077
(877)
(391)
State
673
(116)
(351)
Change in Valuation
(161)
(39)
259
1,589
(1,032)
(483)
Total:
Federal
17,559
12,511
11,239
State
2,762
1,452
1,542
Change in Valuation
(161)
(39)
259
Total
$
20,160
$
13,924
$
13,040
Income taxes provided were different than the tax expense
21
% to
pre-tax income as a result of the following:
(Dollars in Thousands)
2025
2024
2023
Tax Expense at Federal
$
17,161
21.0
%
$
13,769
21.0
%
$
13,411
21.0
%
State Taxes, Net of Federal
(1)
2,021
2.5
1,040
1.6
1,401
2.2
Federal Tax Credits: Renewable
(2)
184
0.2
(2,093)
(3.2)
(1,938)
(3.0)
Nontaxable or Nondeductible Items:
Tax Exempt Interest
Disallowance
(120)
(0.1)
(161)
(0.3)
(259)
(0.4)
Tax-Exempt Cash Surrender
Benefit
(211)
(0.3)
(201)
(0.3)
(187)
(0.3)
Other
1,309
1.6
1,025
1.6
484
0.7
Changes in Unrecognized Tax
36
0.1
66
0.1
77
0.1
Other Adjustments:
Noncontrolling Interest
-
-
340
0.5
293
0.5
Other Items, Net
(220)
(0.3)
139
0.2
(242)
(0.4)
Actual Tax Expense
$
20,160
24.7
%
$
13,924
21.2
%
$
13,040
20.4
%
(1)
(2)
in earlier periods and tax expense in later periods as the investment yield is recognized.
Deferred income tax liabilities and assets result from differences between
purposes and for income tax return purposes.
are currently in effect.
The net deferred tax asset and the temporary differences comprising (Dollars in Thousands)
2025
2024
Deferred Tax Assets Attributable
Allowance for Credit Losses
$
7,550
$
7,168
State Net Operating Loss and Tax
1,730
1,976
Other Real Estate Owned
1,236
964
Accrued SERP Liability
2,363
2,548
Lease Liability
6,826
5,639
Net Unrealized Losses on Investment Securities
3,217
6,779
Investment in Partnership
796
4,404
Other
6,451
2,808
Total Deferred
$
30,169
$
32,286
Deferred Tax Liabilities
Depreciation on Premises and Equipment
$
3,982
$
3,538
Deferred Loan Fees and Costs
5,070
3,543
Intangible Assets
2,689
3,378
Accrued Pension/SERP
3,206
3,302
Accrued Pension Liability
1,754
1,217
Right of Use Asset
6,662
5,510
Investments
469
469
Other
1,569
1,784
Total Deferred
25,401
22,741
Valuation
1,730
1,891
Net Deferred Tax Asset
$
3,038
$
7,654
In the opinion of management, it is more likely than not that all of the deferred tax
operating loss carry-forwards and certain state tax credit carry-forwards expected
Accordingly, a valuation
1.7
1.9
respectively.
1.7
which expire at various dates from
202
6 through
2037
.
The following table presents a reconciliation of the beginning and ending amount
(Dollars in Thousands)
2025
2024
2023
Balance at January 1,
$
316
$
233
$
136
Additions Based on Tax
47
83
97
Balance at December 31
$
363
$
316
$
233
Of this total, $
0.3
effective tax rate in future periods. The Company does not
increase or decrease in the next 12 months.
It is the Company’s policy to recognize
federal or state income taxes accounts.
no
Statements of Income for the years ended December 31, 2025, 2024,
no
Consolidated Statements of Financial Condition for penalties and interest
The Company files a consolidated U.S. federal income tax return and a
subsidiary files various returns in states where its banking offices are
U.S. federal or state tax examinations for years before 2022.
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