Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Schedule of income tax (benefit)

	2022		2021		2020
	(Dollars in thousands)
Currently payable tax:
Federal	$	18,994	$	10,207	$	9,630
State		8,798		7,988		5,828
Total currently payable		27,792		18,195		15,458
Deferred tax expense (benefit):
Federal		(1,237)		1,175		(932)
State		1,256		(1,200)		(757)
Total deferred tax		19		(25)		(1,689)
Income tax expense	$	27,811	$	18,170	$	13,769

Schedule of effective tax rate differs from the federal statutory rate

	2022		2021		2020
Statutory Federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	8.4	%	8.1	%	8.2	%
Low income housing credits, net of investment losses	(0.2)	%	(0.3)	%	(0.5)	%
Increase in cash surrender value of life insurance	(0.4)	%	(0.6)	%	(0.8)	%
Stock option/restricted stock windfall tax benefit	(0.1)	%	(0.2)	%	0.6	%
Non-taxable interest income	(0.2)	%	(0.5)	%	(0.8)	%
Split-dollar term insurance	0.0	%	0.1	%	0.1	%
ISO stock exercise	0.0	%	(0.1)	%	0.0	%
Other, net	1.0	%	0.1	%	0.3	%
Effective tax rate	29.5	%	27.6	%	28.1	%

Schedule of deferred tax assets and liabilities

	2022		2021
	(Dollars in thousands)
Deferred tax assets:
Allowance for credit losses on loans	$	14,171	$	12,716
Lease accounting		9,703		10,245
Defined postretirement benefit obligation		7,585		9,934
Securities available-for-sale		4,690		—
Accrued expenses		3,440		2,681
State income taxes		1,924		1,164
Federal net operating loss carryforwards		1,719		2,206
Premises and equipment		1,677		2,173
Stock compensation		1,363		1,632
California net operating loss carryforwards		1,106		1,489
Nonaccrual interest		174		67
Split-dollar life insurance benefit plan		49		84
Other		201		869
Total deferred tax assets		47,802		45,260
Deferred tax liabilities:
Lease accounting		(9,703)		(10,245)
Loan fees		(2,304)		(2,174)
Intangible liabilities		(1,940)		(1,916)
Prepaid expenses		(1,304)		(972)
FHLB stock		(156)		(166)
I/O strips		(40)		(60)
Securities available-for-sale		—		(823)
Other		(179)		(147)
Total deferred tax liabilities		(15,626)		(16,503)
Net deferred tax assets	$	32,176	$	28,757

Summary of carrying amount of low income tax housing investment

	December 31,		December 31,
	2022		2021
	(Dollars in thousands)
Low income housing investments	$	3,537	$	4,380
Future commitments	$	523	$	568