INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Income Tax Disclosure [Abstract] |
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Schedule of components of income tax expense (benefit) |
Components of income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 were as follows:
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | (Dollars in thousands) | 2023 | | 2022 | | 2021 | Current expense (benefit): | | | | | | Federal | $ | 5,538 | | | $ | 996 | | | $ | 11,304 | | State | 1,404 | | | (1,965) | | | 3,626 | | Total current | 6,942 | | | (969) | | | 14,930 | | Deferred expense: | | | | | | Federal | 9,300 | | | 18,854 | | | 8,654 | | State | 1,911 | | | 6,956 | | | 2,174 | | Total deferred | 11,211 | | | 25,810 | | | 10,828 | | Provision for income taxes | $ | 18,153 | | | $ | 24,841 | | | $ | 25,758 | |
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Schedule of the reasons of difference between the income tax expense (benefit) and the expected tax expense |
Income tax expense (benefit) for the periods presented differed from the "expected" tax expense (computed by applying the U.S. federal corporate tax rate of 21% for the years ended December 31, 2023, 2022 and 2021, to income before income taxes) for the following reasons:
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | (Dollars in thousands) | 2023 | | 2022 | | 2021 | Computed "expected" tax expense | $ | 16,133 | | | $ | 20,741 | | | $ | 22,187 | | Increase (decrease) in taxes resulting from: | | | | | | Tax-exempt interest income | (702) | | | (692) | | | (526) | | Other tax-exempt income | (1,023) | | | (392) | | | (734) | | Low-income housing tax credits | (508) | | | (530) | | | (365) | | State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance | 3,827 | | | 4,982 | | | 5,377 | | Change in the valuation allowance for deferred tax assets allocated to income tax expense | 1,048 | | | 39 | | | (39) | | | | | | | | Other, net | (622) | | | 693 | | | (142) | | Total | $ | 18,153 | | | $ | 24,841 | | | $ | 25,758 | |
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Schedule of the tax effects of temporary differences giving rise to significant portions of the deferred tax assets and deferred tax liabilities |
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:
| | | | | | | | | | | | | December 31, | (Dollars in thousands) | 2023 | | 2022 | Deferred tax assets | | | | Lease liability | $ | 8,162 | | | $ | 9,598 | | Allowance for credit losses | 13,643 | | | 13,534 | | Accrued expenses | 1,804 | | | 3,737 | | Employee retirement benefits | 1,926 | | | 1,941 | | Federal and state tax credit carryforwards | 2,208 | | | — | | | | | | | | | | Federal net operating loss carryforwards | 1,644 | | | 16,363 | | State net operating loss carryforwards | 4,503 | | | 7,583 | | Deferred compensation | 3,976 | | | 2,930 | | | | | | Premises and equipment | 4,161 | | | 4,717 | | Other | 5,679 | | | 6,962 | | Total deferred tax assets | 47,706 | | | 67,365 | | | | | | Deferred tax liabilities | | | | Right-of-use lease asset | 7,918 | | | 9,356 | | Intangible assets | 2,317 | | | 2,427 | | | | | | | | | | | | | | | | | | Other | 3,489 | | | 3,647 | | Total deferred tax liabilities | 13,724 | | | 15,430 | | | | | | Less: Deferred tax valuation allowance | 4,446 | | | 3,398 | | | | | | Net deferred tax assets | $ | 29,536 | | | $ | 48,537 | |
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