Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Federal and State Income Tax Expense

The components of federal and state income tax expense for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands):

	2022			2021			2020
Current
Federal	$	14,401		$	12,269		$	12,315
State		6,171			6,384			7,120
Total current		20,572			18,653			19,435
Deferred
Federal		(2,005	)		(2,562	)		(3,318	)
State		(227	)		(793	)		(1,645	)
Total deferred		(2,232	)		(3,355	)		(4,963	)
Total	$	18,340		$	15,298		$	14,472

Effective Income Tax Reconciliation

The principal reasons for the difference are as follows (in thousands):

	2022			2021			2020
Expected income taxes	$	19,172		$	14,025		$	12,546
Effects of:
Tax-exempt income from bank owned life insurance		(659	)		(575	)		(363	)
Other tax exempt income		(2,497	)		(2,072	)		(1,758	)
Nondeductible interest expense		255			17			45
State taxes, net of federal taxes		4,695			4,417			4,325
Other items		(2,525	)		(514	)		(323	)
Effect of marginal tax rate		(101	)		—			—
Total	$	18,340		$	15,298		$	14,472

Tax Effects of Temporary Differences on Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below (in thousands):

	2022		2021
Deferred tax assets:
Allowance for credit losses	$	16,248	$	12,957
Available-for-sale investment securities		61,880		339
Deferred compensation		4,157		4,025
Supplemental retirement		492		460
Deferred loan costs		302		—
Stock compensation expense		147		163
Deferred revenue		349		79
Purchase accounting		795		443
Acquisition costs		179		217
Other		894		1,139
Total gross deferred tax assets		85,443		19,822
Deferred tax liabilities:
Intangibles amortization		6,398		107
Prepaid expenses		1,418		6,480
FHLB stock dividend		22		985
Deferred expenses		104		23
Purchase accounting		—		915
Depreciation		4,911		3,463
Accumulated accretion		245		111
Mortgage servicing rights		91		118
Other		—		321
Available-for-sale investment securities		—		—
Total gross deferred tax liabilities		13,189		12,523
Deferred tax assets, net	$	72,254	$	7,299