INCOME TAX
The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2025 and 2024.
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Reconciliation of Federal Statutory to Actual Tax Expense: | | | | | | | | | Federal statutory income tax at 21% | $ | 13,675 | | | $ | 9,238 | | | $ | 26,950 | | | $ | 20,739 | | | Tax-exempt interest income | (4,643) | | | (4,396) | | | (9,241) | | | (8,748) | | | Non-deductible FDIC premiums | 162 | | | 143 | | | 291 | | | 282 | | | | | | | | | | | Tax-exempt earnings and gains on life insurance | (401) | | | (405) | | | (859) | | | (739) | | | Tax credits | (915) | | | (360) | | | (1,818) | | | (664) | | | | | | | | | | | State Income Tax | 297 | | | (225) | | | 604 | | | (191) | | | Other | 112 | | | 72 | | | 237 | | | 213 | | | Actual Tax Expense | $ | 8,287 | | | $ | 4,067 | | | $ | 16,164 | | | $ | 10,892 | | | | | | | | | | | Effective Tax Rate | 12.7 | % | | 9.2 | % | | 12.6 | % | | 11.0 | % |
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