Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Provision (Benefit)

The income tax provision for the years ended December 31 is as follows:


	2022		2021		2020
	(dollars in thousands)
Current tax provision:
Federal	$	33,545	$	32,586	$	21,629
State	471		397		329
Total current tax provision	34,016		32,983		21,958
Deferred tax provision (benefit):
Federal	(1,967)		1,501		(5,070)

State	(45)		76		(132)
Total deferred tax provision	(2,012)		1,577		(5,202)
Total tax provision	$	32,004	$	34,560	$	16,756

Schedule of Effective Income Tax Rate Reconciliation

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:


	2022				2021				2020
	Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	33,639	21	%	$	36,292	21	%	$	18,943	21	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	361		—		326		—		155		—
Income from bank owned life insurance	(1,146)		(1)		(1,351)		(1)		(1,376)		(1)
Tax-exempt interest income, net	(809)		(1)		(846)		—		(1,117)		(1)
Tax credits	(341)		—		(127)		—		(44)		—

Other	300		1		266		—		195		—
Total tax provision	$	32,004	20	%	$	34,560	20	%	$	16,756	19	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:


	2022		2021
	(dollars in thousands)
Deferred tax assets:
Lease liability	$	9,581	$	9,489
Allowance for credit losses	21,837		19,597
Postretirement benefits other than pensions	223		235


Unrealized loss on securities available for sale	36,673		2,357
Net operating loss carryforward	37		75


Deferred compensation	1,960		1,969

Accrued interest on nonaccrual loans	935		779



Accrued incentives	3,185		2,591
Unfunded loan commitments & other reserves	2,126		1,363




Other	1,205		988
Total deferred tax assets	77,762		39,443
Deferred tax liabilities:

Loan origination fees and costs	(1,320)		(253)

Right of use asset	(8,646)		(8,589)

Depreciation of assets	(2,139)		(1,725)
Section 197 intangibles	(1,717)		(1,107)
Other	(197)		(308)
Total deferred tax liabilities	(14,019)		(11,982)
Net deferred tax asset	$	63,743	$	27,461