Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions

An allocation of federal and state income taxes between current and deferred portions is presented below:








	Three Months Ended March 31,
	2022		2021
Current	$	—	$	5,949
Deferred	9,313		9,639
Total	$	9,313	$	15,588

Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes

The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the three months ended March 31, 2022 and 2021:


















	Three Months Ended March 31,
	2022				2021
Federal taxes calculated at statutory rate	$	9,355	21.0	%	$	14,377	21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	951		2.1	%	1,750		2.6	%
(Benefit) expense from equity based compensation	(291)		(0.7)	%	(221)		(0.3)	%
Municipal interest income, net of interest disallowance	(444)		(1.0)	%	(424)		(0.6)	%
Bank-owned life insurance	(74)		(0.2)	%	(84)		(0.1)	%


Section 162(m) limitation	122		0.3	%	227		0.3	%
Other	(306)		(0.6)	%	(37)		(0.1)	%
Income tax expense, as reported	$	9,313	20.9	%	$	15,588	22.8	%

Schedule of Net Deferred Tax (Liabilities) Assets

The components of the net deferred tax (liabilities) assets at March 31, 2022 and December 31, 2021, are as follows:


	March 31,		December 31,
	2022		2021
Deferred tax assets:
Allowance for credit losses	$	34,146	$	35,233
Operating lease liabilities	12,251		12,478
Net operating loss	3,644		1,370
Amortization of core deposit intangibles	53		—
Deferred compensation	2,243		5,484
Unrealized loss on debt securities	26,158		—

Unrealized loss on cash flow hedges	—		205
Other assets	7,684		8,301
Subtotal	86,179		63,071
Deferred tax liabilities:
FHLB stock dividends	$	(484)	$	(484)
Operating leases - right of use assets	(11,111)		(11,287)
Depreciation	(7,930)		(7,938)
Amortization of core deposit intangibles	—		(116)
Unrealized gain on equity securities	(2,167)		(2,407)
Unrealized gain on cash flow hedges	(68)		—
Unrealized gain on debt securities	—		(1,324)
Mortgage servicing rights	(37,696)		(30,098)
Goodwill	(14,276)		(13,743)
Other liabilities	(2,699)		(2,494)
Subtotal	(76,431)		(69,891)
Net deferred tax assets (liabilities)	$	9,748	$	(6,820)