INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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

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

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