Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consisted of the following (in thousands):


	For the Year Ended December 31,
	2023		2022		2021
Current
Federal	$	20,894	$	32,981	$	19,696
State	8,655		11,807		8,861
Total current	29,549		44,788		28,557
Deferred
Federal	4,250		2,231		3,228
State	(1,099)		(454)		380
Total deferred	3,151		1,777		3,608
Total provision for income taxes	$	32,700	$	46,565	$	32,165

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, 2023, 2022 and 2021 is as follows (dollars in thousands):


	For the Year Ended December 31,
	2023			2022			2021
Income before provision for income taxes	$	136,765		$	193,922		$	142,241
Federal income tax, at statutory rates	21.0		%	21.0		%	21.0		%
Computed “expected” federal income tax expense	$	28,721		$	40,724		$	29,871
Increase (decrease) in federal income tax expense resulting from
State income taxes, net of federal benefit	5,979			8,927			7,223
Earnings on BOLI	(1,109)			(1,381)			(1,435)
Tax exempt interest	(606)			(786)			(768)
Merger related expenses	—			90			24
Stock compensation	(298)			26			(110)


Reclassification of certain tax effect from accumulated other comprehensive income	(94)			(157)			(173)
Research and development and other credits	(557)			(471)			(475)
Dividends received deduction	(368)			(371)			(510)
Other items, net	1,032			(36)			(1,482)
Total provision for income taxes	$	32,700		$	46,565		$	32,165

Schedule 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, 2023 and 2022 are presented in the following table (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Allowance for credit losses on loans and debt securities HTM	$	16,951	$	14,887
Other reserves	2,482		2,870
Incentive compensation	3,871		4,715
Deferred compensation	370		419
Stock plans	2,474		2,693
Unrealized losses on assets held-for-sale	392		1,080
Unrealized losses on AFS securities	7,274		11,849
Net operating loss carryforwards related to acquisition	21,077		23,100

Section 174 Capitalized Costs	3,737		2,348

Federal and state alternative minimum tax	1,196		2,294
Other, net	653		683


Total gross deferred tax assets	60,477		66,938
Deferred tax liabilities:

Unrealized gain on equity securities	(3,386)		(2,155)
Premises and equipment	(4,891)		(4,362)
Deferred loan and commitment costs, net	(2,317)		(1,937)
Purchase accounting related adjustments	(1,716)		(2,300)
Investments, discount accretion	(73)		(365)


Total gross deferred tax liabilities	(12,383)		(11,119)
Net deferred tax assets	$	48,094	$	55,819