Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Components of Provision for Income Taxes

The components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses, are as follows:

(in thousands)	2021		2020			2019
Current federal income tax expense	$	16,160	$	12,884		$	8,351
Current state income tax expense		4,214		786			513
Deferred federal income tax expense (benefit)		1,138		(2,900	)		2,030
Deferred state income tax expense (benefit)		1,192		0			0
Effect of Kentucky tax legislation benefit		0		(9	)		(3,442	)
Total income tax expense	$	22,704	$	10,761		$	7,452

Reconciliation of Income Tax Expense at Statutory Rate to Actual Income Tax Expense

A reconciliation of income tax expense at the statutory rate to our actual income tax expense is shown below:

(in thousands)	2021					2020					2019
Computed at the statutory rate	$	23,235		21.00	%	$	14,755		21.00	%	$	15,118		21.00	%
Adjustments resulting from:
Tax-exempt interest		(690	)	(0.62	)		(547	)	(0.78	)		(563	)	(0.78	)
Housing and new markets credits		(3,939	)	(3.56	)		(4,194	)	(5.97	)		(4,471	)	(6.21	)
Bank owned life insurance		(382	)	(0.35	)		(277	)	(0.39	)		(284	)	(0.39	)
ESOP dividend deduction		(233	)	(0.21	)		(221	)	(0.32	)		(203	)	(0.28	)
Stock option exercises and restricted stock vesting		25		0.02			(10	)	(0.01	)		(10	)	(0.01	)
Effect of KY tax legislation		0		0.00			(7	)	(0.01	)		(2,719	)	(3.78	)
State income taxes		4,270		3.86			621		0.88			405		0.56
Split dollar life insurance		212		0.19			529		0.75			0		0.00
Other		206		0.19			112		0.16			179		0.24
Total	$	22,704		20.52	%	$	10,761		15.31	%	$	7,452		10.35	%

Components of Net Deferred Tax Liability

The components of the net deferred tax liability as of December 31 are as follows:

(in thousands)	2021			2020
Deferred tax assets:
Allowance for credit losses	$	10,418		$	11,982
Interest on nonaccrual loans		547			471
Accrued expenses		2,960			1,444
Unrealized losses on AFS securities		1,664			0
Allowance for other real estate owned		268			593
State net operating loss carryforward		2,308			3,975
Lease liabilities		3,245			3,468
Other		973			470
Total deferred tax assets		22,383			22,403
Deferred tax liabilities:
Depreciation and amortization		(14,604	)		(15,006	)
FHLB stock dividends		(961	)		(1,245	)
Loan fee income		(621	)		(238	)
Mortgage servicing rights		(1,690	)		(1,015	)
Unrealized gains on AFS securities		0			(4,807	)
Limited partnership investments		(648	)		(414	)
Right of use assets		(3,031	)		(3,297	)
Other		(1,374	)		(1,068	)
Total deferred tax liabilities		(22,929	)		(27,090	)
Beginning balance for valuation allowance for deferred tax asset		0			210
Change in valuation allowance		0			(210	)
Ending balance for valuation allowance for deferred tax asset		0			0
Net deferred tax liability	$	(546	)	$	(4,687	)