XML 42 R31.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2022 and December 31, 2021.


(Dollars in thousands)	September 30, 2022			December 31, 2021
Goodwill and other intangibles	$	(43,509	)	$	(43,894	)
Provision for loan losses		10,360			11,057
Net operating loss carryforwards (1)		3,570			12,167
Accrued expenses, compensation, and other assets		4,042			2,579
Unrealized gains on other investments		1,700			2,176
Total deferred tax liability		(23,837	)		(15,915	)
Valuation allowance		(2,295	)		(2,295	)
Deferred tax liability, net	$	(26,132	)	$	(18,210	)

(1)

As of September 30, 2022, the Company and its subsidiaries had an estimated $10.9 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.3 million as of September 30, 2022.

Summary of Components of Tax Provision

The components of our tax provision for the three and nine months ended September 30, 2022 and 2021 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2022		2021		2022		2021
Current
Federal	$	693	$	1,359	$	2,181	$	2,154
State		340		721		1,109		991
Deferred
Federal		2,081		3,198		7,679		9,252
State		91		889		1,923		4,176
Net provision for income taxes	$	3,205	$	6,167	$	12,892	$	16,573

Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision for the three and nine months ended September 30, 2022 and 2021.


	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2022			2021			2022			2021
Statutory Federal income tax provision at 21%	$	2,613		$	4,807		$	10,142		$	11,331
State and local income taxes, net of federal income tax		511			942			1,984			2,217
Change in state income tax accruals		—			—			—			1,833
Change in effective state income tax rates and accrual		—			110			—			1,479
Income attributable to non-controlling interest		—			(183	)		—			(449	)
Non-deductible expenses		410			132			1,484			(81	)
Other		(329	)		359			(718	)		243
Total income tax provision	$	3,205		$	6,167		$	12,892		$	16,573