Income Taxes

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Current:
Federal	$	40,073	$	38,779	$	16,346
State	6,135		6,937		4,586
Total current	46,208		45,716		20,932
Deferred:
Federal	(7,917)		(7,936)		14,206
State	(1,545)		(1,525)		1,190
Total deferred	(9,462)		(9,461)		15,396
Total provision	$	36,746	$	36,255	$	36,328

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.

	2023				2022				2021
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	$	33,953	21.0	%	$	32,925	21.0	%	$	32,526	21.0	%
(Decrease) increase in income taxes resulting from:
Tax-exempt interest income	(592)		(0.4)		(504)		(0.3)		(373)		(0.2)
State taxes, net of federal income tax benefit	3,626		2.2		4,275		2.7		4,563		2.9
Other	(241)		(0.1)		(441)		(0.3)		(388)		(0.2)
Total	$	36,746	22.7	%	$	36,255	23.1	%	$	36,328	23.5	%

The tax benefit related to losses on investment securities available-for-sale for the years 2023, 2022, and 2021 was approximately $720,000, $39,000, and $164,000, respectively.

The following table shows the composition of deferred tax assets and liabilities as of December 31, 2023 and 2022.

(Dollars in thousands)	2023		2022
Deferred tax assets:
Allowance for credit losses	$	34,957	$	33,237
Operating lease liability	4,675		4,728
Accruals for employee benefits	4,103		3,752
Tax advantaged partnerships	1,658		—
Net unrealized losses on securities available-for-sale	33,433		46,353
Other	2,405		426
Total deferred tax assets	81,231		88,496
Deferred tax liabilities:
Differing depreciable bases in premises and leased equipment	5,198		7,373
Right of use assets - leases	5,224		5,037
Differing bases in assets related to acquisitions	4,308		4,305
Tax advantaged partnerships	—		3,823
Other	2,246		245
Total deferred tax liabilities	16,976		20,783
Net deferred tax asset	$	64,255	$	67,713

No valuation allowance for deferred tax assets was recorded at December 31, 2023 and 2022 as the Company believes it is more likely than not that all of the deferred tax assets will be realized.

Tax years that remain open and subject to audit include the federal 2020-2023 years and the Indiana 2020-2023 years. The Company does not anticipate a significant change in the amount of uncertain tax positions within the next 12 months.