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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following is a summary of income tax expense for the years ended December 31, 2022, 2021, and 2020:

December 31, 2022December 31, 2021December 31, 2020
Current – federal$15,494 $13,494 $8,681 
Current – state1,346 1,268 729 
Deferred – federal(1,618)(1,025)(1,672)
Deferred – state(196)(666)(391)
Income tax expense$15,026 $13,071 $7,347 
The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

December 31, 2022%December 31, 2021%December 31, 2020%
Tax at statutory rate$16,425 21.0 %$14,863 21.0 %$8,419 21.0 %
Tax exempt income, net(1,036)(1.3)(1,016)(1.4)(1,119)(2.8)
Bank owned life insurance(721)(0.9)(554)(0.8)(367)(0.9)
Tax credits, net of amortization(193)(0.3)(215)(0.3)(104)(0.3)
Effect of state tax908 1.2 476 0.7 576 1.4 
Other(357)(0.5)(483)(0.7)(58)(0.1)
Income tax expense$15,026 19.2 %$13,071 18.5 %$7,347 18.3 %

The following table sets forth deferred taxes as of December 31, 2022 and 2021:

December 31, 2022December 31, 2021
Deferred tax assets:
Allowance for credit losses$9,154 $7,606 
Fair value adjustments – business combination917 1,240 
Deferred compensation3,448 3,344 
Net operating loss carryover344 327 
Post-retirement benefits647 696 
Unrealized loss on interest rate swap— 81 
Nonaccrual loan interest348 509 
Accrued expenses2,300 1,718 
Deferred fees and costs997 1,259 
Unrealized loss on securities available-for-sale12,914 188 
Unrealized loss on securities held-to-maturity1,265 — 
Operating lease liability7,645 4,845 
Other671 383 
40,650 22,196 
Deferred tax liabilities:
Premises and equipment3,409 3,093 
Unrealized gain on equity securities119 292 
Intangibles – section 1972,492 2,494 
Mortgage servicing rights399 366 
Unrealized gain on interest rate swap32 — 
Operating lease asset7,397 4,649 
Other68 220 
13,916 11,114 
Net deferred tax asset$26,734 $11,082 

At December 31, 2022 and 2021, the Corporation had no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

At December 31, 2022, the Corporation had state net operating loss carryforwards of approximately $15.5 million related to the acquisition of Bank of Akron, which expire at various dates from 2034 to 2039. The Corporation's ability to utilize carryforwards is limited to $363 thousand per year. Due to this limitation, management determined it is more likely than not that approximately $9.5 million of net operating loss carryforwards will expire unutilized.

The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2022, 2021 and 2020, there were no amounts accrued for interest and/or penalties and no amounts recorded as expense for the years ending December 31, 2022, 2021, and 2020.

The Corporation and its subsidiaries are subject to U.S. federal income tax, as well as filing various state returns. The Corporation is no longer subject to U.S. federal income tax examinations by the taxing authorities for years prior to 2019. Tax years 2019 through 2022 are open to examination.