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Income Taxes
12 Months Ended
Dec. 31, 2022
Income Taxes  
Income Taxes

Note 11: Income Taxes

Income tax expense (benefit) for the years ending December 31, were as follows:

    

2022

    

2021

    

2020

Current federal

$

13,241

$

750

$

6,269

Current state

6,209

594

3,960

Deferred federal

3,338

4,445

(135)

Deferred state

1,356

2,034

(511)

Total income tax expense

$

24,144

$

7,823

$

9,583

The following were the components of the deferred tax assets and liabilities as of December 31:

    

2022

    

2021

Accrued bonus

$

2,700

$

1,362

Allowance for credit losses

15,591

14,636

Deferred compensation

1,292

1,293

Goodwill amortization/impairment

-

919

Stock based compensation

1,257

911

Business combination adjustments

1,138

882

Federal recognized built-in loss ("RBIL") carryforward

-

493

Other assets

1,621

1,173

Total deferred tax assets

23,599

21,669

Accumulated depreciation on premises and equipment

(4,107)

(1,636)

Goodwill amortization/impairment

(229)

-

Mortgage servicing rights

(3,103)

(1,982)

Amortization of core deposit intangible

(3,673)

(4,269)

Acquired securities

(1,921)

(2,458)

Other liabilities

(2,025)

(1,814)

Total deferred tax liabilities

(15,058)

(12,159)

Net deferred tax asset before adjustments related to other comprehensive income

8,541

9,510

Tax effect of adjustments related to other comprehensive income

36,209

(3,410)

Net deferred tax asset

$

44,750

$

6,100

At December 31, 2022, the Company had no federal net operating loss carryforward and no state net operating loss carryforward.

Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31, due to the following:

    

2022

    

2021

    

2020

Tax at statutory federal income tax rate

$

19,225

$

5,852

$

7,856

Nontaxable interest income, net of disallowed interest deduction

(1,097)

(1,069)

(1,067)

BOLI income

(151)

(292)

(271)

State income taxes, net of federal benefit

6,091

2,054

2,570

Stock based compensation

(43)

54

297

Transaction costs

-

396

-

Other, net

119

828

198

Total tax at effective tax rate

$

24,144

$

7,823

$

9,583

The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income.  Significant positive evidence evaluated included recent and projected earnings, strong asset quality and an improved capital position.  No significant negative evidence was noted.