Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

Income tax expense consisted of the following:

	Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Income tax expense:
Current	$	37,812	$	22,766	$	12,971
Deferred	(5,832)		(2,080)		3,908
Change in valuation allowance for deferred tax asset	—		—		23
Income tax expense	$	31,980	$	20,686	$	16,902

Summary of Effective Income Tax Rate Reconciliation

Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following:

	Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Tax provision computed at federal statutory rate	$	30,440	$	17,789	$	15,844
Effect of:
State taxes, net	3,335		2,919		1,704
Stock-based compensation	(1,778)		(109)		(23)
Bank-owned life insurance	(332)		(121)		(114)
Tax exempt interest	(201)		(250)		(442)
Change in valuation allowance for deferred tax asset	—		—		23
Other	516		458		(90)
Income tax expense	$	31,980	$	20,686	$	16,902

Significant Components of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

(Dollars in thousands)	2021		2020
Deferred tax assets
Federal net operating loss carryforwards	$	7,231	$	4,067
State net operating loss carryforwards	1,458		459
Stock-based compensation	5,742		1,799
Allowance for credit losses	11,341		24,317
Accrued liabilities	4,465		2,675
Lease liability	8,348		4,598
Other	707		446
Total deferred tax assets	39,292		38,361
Deferred tax liabilities
Goodwill and intangible assets	9,449		2,452
Fair value adjustment on junior subordinated debentures	2,324		2,449
Premises and equipment	4,786		10,767
Installment gain on sale of subsidiary	626		1,049
Lease right-of-use asset	7,598		4,172
Unrealized gain on securities available for sale	1,023		1,601
Derivative financial instruments	1,475		193
Indemnification asset	1,123		8,575
Acquired loan basis	525		184
Other	62		214
Total deferred tax liabilities	28,991		31,656
Net deferred tax asset before valuation allowance	10,301		6,705
Valuation allowance	(278)		(278)
Net deferred tax asset	$	10,023	$	6,427