Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of federal and state income tax expense

Federal and state income tax expense consists of the following for the years ended December 31:

(dollars in thousands)	2020		2019		2018
Current federal income tax expense	$	40,201	$	39,756	$	39,498
Current state income tax expense	12,059		14,153		15,931
Total current tax expense	52,260		53,909		55,429
Deferred federal income tax expense (benefit)	(5,212)		78		(2,634)
Deferred state income tax benefit	(3,120)		(139)		(863)
Total deferred tax benefit	(8,332)		(61)		(3,497)
Total income tax expense	$	43,928	$	53,848	$	51,932

Schedule of significant components of deferred tax assets and liabilities

The table below summarizes significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019:

(dollars in thousands)	2020		2019
Deferred tax assets
Allowance for credit losses	$	28,118	$	19,144
Deferred loan fees and costs	8,104		6,354
Leases	7,183		7,790
Stock-based compensation	828		674
Net operating loss	6,896		6,184
Unrealized loss on interest rate swap derivatives	132		53
SERP	2,495		1,541
Premises and equipment	879		914
Other assets	1,982		816
Valuation allowances	(5,845)		(4,899)
Total deferred tax assets	50,772		38,571
Deferred tax liabilities
Unrealized net gain on securities available-for-sale	(5,519)		(1,081)
Excess servicing	(206)		(51)
Intangible assets	—		(9)
Leases	(6,470)		(7,117)
Other liabilities	(6)		(509)
Total deferred tax liabilities	(12,201)		(8,767)
Net deferred income tax assets	$	38,571	$	29,804

Schedule of reconciliation of the statutory federal income tax rate to effective income tax rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31 2020, 2019, and 2018 follows:

	2020		2019		2018
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%
Increase (decrease) due to:
State income taxes	5.04	%	5.49	%	5.83	%
Tax exempt interest and dividend income	(0.75)	%	(0.69)	%	(1.13)	%
Stock-based compensation expense	0.25	%	1.15	%	0.01	%
Other	(0.63)	%	0.46	%	(0.28)	%
Effective tax rate	24.91	%	27.41	%	25.43	%