Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Components of Income Tax Expense Benefit

The provision for income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following (in thousands):


	For the Year Ended December 31,
	2022		2021		2020
Current
Federal	$	32,981	$	19,696	$	15,731
State	11,807		8,861		6,617
Total current	44,788		28,557		22,348
Deferred
Federal	2,231		3,228		(2,746)
State	(454)		380		(1,869)
Total deferred	1,777		3,608		(4,615)
Total provision for income taxes	$	46,565	$	32,165	$	17,733

Schedule of Income Tax Reconciliation

The income tax provision reconciled to the income taxes that would have been computed at the statutory federal rate for the years ended December 31, 2022, 2021 and 2020 is as follows (dollars in thousands):


	For the Year Ended December 31,
	2022			2021			2020
Income before provision for income taxes	$	193,922		$	142,241		$	81,042
Federal income tax, at statutory rates	21.0		%	21.0		%	21.0		%
Computed “expected” federal income tax expense	$	40,724		$	29,871		$	17,019
Increase (decrease) in federal income tax expense resulting from
State income taxes, net of federal benefit	8,927			7,223			3,751
Earnings on BOLI	(1,381)			(1,435)			(1,349)
Tax exempt interest	(786)			(768)			(1,161)
Merger related expenses	90			24			138
Stock compensation	26			(110)			(136)


Reclassification of certain tax effect from accumulated other comprehensive income	(157)			(173)			(204)
Research and development and other credits	(471)			(475)			—
Dividends received deduction	(371)			(510)			—
Other items, net	(36)			(1,482)			(325)
Total provision for income taxes	$	46,565		$	32,165		$	17,733

Schedule of Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented in the following table (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Allowance for credit losses on loans and debt securities HTM	$	14,887	$	12,915
Other reserves	2,870		3,115
Incentive compensation	4,715		3,546
Deferred compensation	419		471
Stock plans	2,693		2,565
Unrealized losses on assets held-for-sale	1,080		1,626
Unrealized losses on AFS securities	11,849		1,332
Net operating loss carryforwards related to acquisition	23,100		28,057


Other, net	3,031		1,867

Federal and state alternative minimum tax	2,294		2,295


Total gross deferred tax assets	66,938		57,789
Deferred tax liabilities:

Unrealized gain on equity securities	(2,155)		—
Premises and equipment	(4,362)		(5,704)
Deferred loan and commitment costs, net	(1,937)		(2,579)
Purchase accounting adjustments	(2,300)		(2,056)
Investments, discount accretion	(365)		(371)


Total gross deferred tax liabilities	(11,119)		(10,710)
Net deferred tax assets	$	55,819	$	47,079