INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of components of income tax expense (benefit)

Components of income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 were as follows:


	Year Ended December 31,
(Dollars in thousands)	2024		2023		2022
Current expense (benefit):
Federal	$	5,744	$	5,538	$	996
State	112		1,404		(1,965)
Total current	5,856		6,942		(969)
Deferred expense:
Federal	6,800		9,300		18,854
State	1,971		1,911		6,956
Total deferred	8,771		11,211		25,810
Provision for income taxes	$	14,627	$	18,153	$	24,841

Schedule of the reasons of difference between the income tax expense (benefit) and the expected tax expense

Income tax expense (benefit) for the periods presented differed from the "expected" tax expense (computed by applying the U.S. federal corporate tax rate of 21% for the years ended December 31, 2024, 2023 and 2022, to income before income taxes) for the following reasons:


	Year Ended December 31,
(Dollars in thousands)	2024		2023		2022
Computed "expected" tax expense	$	14,288	$	16,133	$	20,741
Increase (decrease) in taxes resulting from:
Tax-exempt interest income	(868)		(702)		(692)
Other tax-exempt income	(1,370)		(1,023)		(392)
Low-income housing tax credits	(940)		(508)		(530)
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance	3,354		3,827		4,982
Change in the valuation allowance for deferred tax assets allocated to income tax expense	(1,340)		1,048		39
Prior year deferred adjustments	611		(1,043)		348

Other, net	892		421		345
Total	$	14,627	$	18,153	$	24,841

Schedule of the tax effects of temporary differences giving rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:


	December 31,
(Dollars in thousands)	2024		2023
Deferred tax assets
Lease liability	$	8,530	$	8,162
Allowance for credit losses	12,643		13,643
Accrued expenses	2,576		1,804
Employee retirement benefits	1,765		1,926
Federal and state tax credit carryforwards	1,590		2,208


Federal net operating loss carryforwards	—		1,644
State net operating loss carryforwards	2,890		4,503
Deferred compensation	4,207		3,976

Premises and equipment	4,460		4,161
Available-for-sale and held-to-maturity investment securities	—		2,309
Other	1,667		3,370
Total deferred tax assets	40,328		47,706

Deferred tax liabilities
Right-of-use lease asset	8,210		7,918
Intangible assets	2,257		2,317




Available-for-sale and held-to-maturity investment securities	5,749		—
Other	3,180		3,489
Total deferred tax liabilities	19,396		13,724

Less: Deferred tax valuation allowance	3,106		4,446

Net deferred tax assets	$	17,826	$	29,536