Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table shows the composition of income tax expense.

Year Ended December 31 (Dollars in thousands)	2021		2020		2019
Current:
Federal	$	16,346	$	42,411	$	28,130
State	4,586		6,629		5,739
Total current	20,932		49,040		33,869
Deferred:
Federal	14,206		(21,865)		(5,135)
State	1,190		(2,295)		(595)
Total deferred	15,396		(24,160)		(5,730)
Total provision	$	36,328	$	24,880	$	28,139

The following table shows the reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate (21%) to income before income taxes.

	2021				2020				2019
Year Ended December 31 (Dollars in thousands)	Amount		Percent of Pretax Income		Amount		Percent of Pretax Income		Amount		Percent of Pretax Income
Statutory federal income tax	$	32,526	21.0	%	$	22,332	21.0	%	$	25,232	21.0	%
(Decrease) increase in income taxes resulting from:
Tax-exempt interest income	(373)		(0.2)		(439)		(0.4)		(552)		(0.5)
State taxes, net of federal income tax benefit	4,563		2.9		3,424		3.2		4,064		3.4
Other	(388)		(0.2)		(437)		(0.4)		(605)		(0.5)
Total	$	36,328	23.5	%	$	24,880	23.4	%	$	28,139	23.4	%

The tax expense related to (losses) gains on investment securities available-for-sale for the years 2021, 2020, and 2019 was approximately $(164,000), $67,000, and $0, respectively.

The following table shows the composition of deferred tax assets and liabilities as of December 31, 2021 and 2020.

(Dollars in thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses	$	32,431	$	35,696
Tax credit carryforward	—		8,606
Operating lease liability	5,145		5,704
Accruals for employee benefits	3,837		2,963
Capitalized loan costs	15		893
Net unrealized losses on securities available-for-sale	3,128		—
Other	1,015		851
Total deferred tax assets	45,571		54,713
Deferred tax liabilities:
Differing depreciable bases in premises and leased equipment	10,796		13,118
Right of use assets - leases	5,315		5,737
Differing bases in assets related to acquisitions	4,219		4,160
Tax advantaged partnerships	9,502		3,770
Net unrealized gains on securities available-for-sale	—		5,827
Other	713		634
Total deferred tax liabilities	30,545		33,246
Net deferred tax asset	$	15,026	$	21,467

No valuation allowance for deferred tax assets was recorded at December 31, 2021 and 2020 as the Company believes it is more likely than not that all of the deferred tax assets will be realized. Additionally, the tax credit carryforward generated in 2020 was fully utilized in 2021.

Tax years that remain open and subject to audit include the federal 2018-2021 years and the Indiana 2018-2021 years. The Company does not anticipate a significant change in the amount of uncertain tax positions within the next 12 months.