ORRSTOWN FINANCIAL SERVICES INC Income Taxes Disclosure
| 2024 | 2023 | 2022 | |||||||||||||||
| Current expense | $ | 6,623 | $ | 10,021 | $ | 5,170 | |||||||||||
| Deferred benefit | (867) | (651) | (591) | ||||||||||||||
| Income tax expense | $ | 5,756 | $ | 9,370 | $ | 4,579 | |||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
| Increase (decrease) resulting from: | |||||||||||||||||
| State taxes, net of federal benefit | 2.3 | 1.5 | 1.6 | ||||||||||||||
| Tax exempt interest income | (4.6) | (2.5) | (4.1) | ||||||||||||||
| Income from life insurance | (2.1) | (0.8) | (1.3) | ||||||||||||||
| Disallowed interest expense | 2.8 | 1.1 | 0.3 | ||||||||||||||
| Low-income housing credits and related expenses | (0.2) | (0.1) | (0.2) | ||||||||||||||
| Merger-related expenses | 1.3 | 0.3 | — | ||||||||||||||
| Share-based compensation and related expenses | (0.9) | (0.1) | (0.5) | ||||||||||||||
| Other | 1.1 | 0.4 | 0.4 | ||||||||||||||
| Effective income tax rate | 20.7 | % | 20.8 | % | 17.2 | % | |||||||||||
| 2024 | 2023 | ||||||||||
| Deferred tax assets: | |||||||||||
| Allowance for credit losses | $ | 11,116 | $ | 6,445 | |||||||
| Deferred compensation | 1,849 | 491 | |||||||||
| Retirement and salary continuation plans | 4,712 | 3,329 | |||||||||
| Share-based compensation | 785 | 712 | |||||||||
| Off-balance sheet reserves | 565 | 387 | |||||||||
| Nonaccrual loan interest | 1,735 | 1,388 | |||||||||
| Net deferred loan fees and costs | — | 342 | |||||||||
| Net unrealized losses on AFS securities | 8,014 | 7,331 | |||||||||
| Net unrealized losses on cash flow hedges | — | 54 | |||||||||
| Purchase accounting adjustments | 24,318 | 745 | |||||||||
| Bonus accrual | 3,201 | 845 | |||||||||
| Right-of-use lease liabilities | 3,248 | 2,594 | |||||||||
| Net operating loss carryforward | 1,534 | 1,770 | |||||||||
| Other | 2,618 | 677 | |||||||||
| Total deferred tax assets | 63,695 | 27,110 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Depreciation | 643 | 493 | |||||||||
| Net deferred loan fees and costs | 946 | — | |||||||||
| Net unrealized gains on cash flow hedges | 259 | — | |||||||||
| Mortgage servicing rights | 845 | 834 | |||||||||
| Purchase accounting adjustments | 13,879 | 479 | |||||||||
| Right-of-use lease assets | 3,157 | 2,433 | |||||||||
| Investment in partnerships | 1,232 | 468 | |||||||||
| Other | 87 | 386 | |||||||||
| Total deferred tax liabilities | 21,048 | 5,093 | |||||||||
| Deferred tax asset, net | $ | 42,647 | $ | 22,017 | |||||||
Want the next ORRSTOWN FINANCIAL SERVICES INC income taxes disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment ORRSTOWN FINANCIAL SERVICES INC's next filing hits EDGAR. No credit card, your email never gets sold.
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.