INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2021, 2020 and 2019 consisted of the following:


(dollars in thousands)	2021		2020		2019
Current federal	$	21,329	$	20,032	$	19,430
Deferred federal	(1,249)		(1,688)		(408)

Current state	1,892		1,484		1,394
Deferred state	(261)		(289)		(78)
Total income tax expense	$	21,711	$	19,539	$	20,338

Schedule of Differences In Taxes From Continuing Operations

The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:


(dollars in thousands)	2021		2020		2019
Income taxes at statutory federal rate of 21%	$	24,663	$	21,814	$	22,551
Increase (decrease) in taxes resulting from:
Tax exempt income	(2,822)		(1,925)		(1,682)
Nondeductible expense	116		117		194
State income tax, net of federal tax effect	1,288		944		1,040
Captive insurance premium income	(303)		(227)		(310)
Tax credits	(578)		(540)		(548)
Bank owned life insurance	(596)		(595)		(573)
Long-term incentive plan	(274)		(58)		(421)
Nondeductible compensation expense	156		0		0
Other	61		9		87
Total income tax expense	$	21,711	$	19,539	$	20,338

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2021 and 2020 consisted of the following:


(dollars in thousands)	2021		2020
Deferred tax assets:
Bad debts	$	17,321	$	15,634
Pension and deferred compensation liability	2,351		2,006
Nonaccrual loan interest	600		892
Long-term incentive plan	1,896		1,212
Lease liability	1,078		1,190
Deferred loan fees	771		—
Other	191		745
	24,208		21,679
Deferred tax liabilities:
Depreciation	4,279		4,718
Loan servicing rights	717		1,162
State taxes	679		524
Intangible assets	1,270		1,265
REIT spillover dividend	1,180		1,180
Prepaid expenses	952		948
Lease right of use	1,078		1,190
Other	194		442
	10,349		11,429
Valuation allowance	0		0
Net deferred tax asset	$	13,859	$	10,250