INCOME TAXES

12 Months Ended

Dec. 31, 2022

INCOME TAXES

INCOME TAXES

NOTE 16 – INCOME TAXES

Allocation of income tax expense between current and deferred portions for the years ended December 31 is as follows:

	Year Ended December 31,
	2022		2021		2020
	(dollars in thousands)
Current
Federal	$	15,194	$	11,330	$	8,358
State		7,459		6,053		4,709
Total current		22,653		17,383		13,067
Deferred
Federal		(2,045)		1,945		(226)
State		(874)		963		(113)
Total deferred		(2,919)		2,908		(339)
Income tax expense	$	19,734	$	20,291	$	12,728

Income tax expense differs from the statutory federal rate for the years ended December 31 due to the following:

	Year Ended December 31,
	2022				2021				2020
	Amount		Percentage		Amount		Percentage		Amount		Percentage
	(dollars in thousands)
Federal income tax, at statutory rate	$	16,000	21.0	%	$	16,078	21.0	%	$	10,410	21.0	%
Increase (decrease) resulting from:
Federally tax exempt interest income		(1,618)	(2.1)			(1,426)	(1.9)			(1,470)	(3.0)
State taxes, net of federal benefit		5,285	6.9			5,430	7.1			3,631	7.4
Other		67	0.1			209	0.3			157	0.3
Income tax expense	$	19,734	25.9	%	$	20,291	26.5	%	$	12,728	25.7	%

The components of the deferred tax assets and liabilities are as follows:

	December 31, 2022		December 31, 2021
	(dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	7,151	$	6,756
Compensation related		2,623		2,314
Deferred loan fees		965		1,059
Nonaccrual interest		480		489
Foreclosed assets		142		43
Goodwill		153		316
Net unrealized losses on debt securities		29,874		304
Other		5,237		853
Total deferred tax assets		46,625		12,134
Deferred tax liabilities
Fixed asset depreciation		3,940		4,188
Mortgage servicing rights		2,868		2,262
Other purchase accounting adjustments		610		776
Intangible assets		214		374
Prepaid assets		756		664
Other		2,756		505
Total deferred tax liabilities		11,144		8,769
Net deferred tax asset	$	35,481	$	3,365