INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The components of the provision for federal income taxes are as follows:

	For the Years Ended December 31,
	2022		2021		2020
	(In thousands)
Current	$	9,161	$	15,558	$	17,527
Deferred	1,931		2,783		(7,090)
Total	$	11,092	$	18,341	$	10,437

Reported income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate to income before income taxes for the years ended December 31, 2022, 2021 and 2020 due to the following:

	For the Years Ended December 31,
	2022		2021		2020
	(In thousands)
Taxes calculated at statutory rate	$	13,130	$	20,978	$	11,754
Increase (decrease) resulting from:
Stock based compensation	(396)		(620)		136
Effect of tax-exempt income	(2,554)		(2,190)		(1,475)
Nondeductible merger expenses	406		227		—
Bank owned life insurance	(236)		(54)		22
Salaries deduction limitation	490		—		—
Other, net	252		—		—
Total	$	11,092	$	18,341	$	10,437

Deferred taxes as of December 31, 2022 and 2021 are based on the 21% maximum federal statutory tax rate. Deferred tax assets and liabilities are as follows:

	As of December 31,
	2022		2021
	(In thousands)
Deferred tax assets:
Allowance for credit losses on loans and unfunded commitments	$	22,685	$	11,240
Deferred loan fees	62		1,077
Deferred compensation	2,636		836
Loans and securities purchase accounting adjustments	40,239		—
Net unrealized loss on available for sale securities	38,080		—
Other deferred assets	393		216
Total deferred tax assets	104,095		13,369
Deferred tax liabilities:
Core deposit intangible and other purchase accounting adjustments	(30,591)		(3,416)
Net unrealized gain on available for sale securities	—		(4,853)
Premises and equipment basis difference	(4,004)		(2,551)
Total deferred tax liabilities	(34,595)		(10,820)
Net deferred tax assets (recorded in other assets)	$	69,500	$	2,549

Interest and penalties related to tax positions are recognized in the period in which they begin accruing or when the entity claims the position that does not meet the minimum statutory thresholds. The Company does not have any material uncertain tax positions and does not have any interest and penalties recorded in the income statement for the years ended December 31, 2022, 2021 and 2020. The Company is no longer subject to examination by the U.S. Federal Tax Jurisdiction for the years prior to 2019.