Note 15 - Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Federal and state income tax expense

	2023		2022		2021
	(dollars in thousands)
Current	$	14,008	$	19,165	$	7,290
Deferred		(946)		(4,682)		15,272
	$	13,062	$	14,483	$	22,562

Reconciliation of the expected federal income tax expense

	Year Ended December 31,
	2023				2022				2021
			% of				% of				% of
			Pretax				Pretax				Pretax
	Amount		Income		Amount		Income		Amount		Income
	(dollars in thousands)
Computed "expected" tax expense	$	26,590	21.0	%	$	23,845	21.0	%	$	25,508	21.0	%
Tax exempt income, net		(13,823)	(10.9)			(10,689)	(9.4)			(7,537)	(6.2)
Bank-owned life insurance		(875)	(0.7)			(432)	(0.4)			(386)	(0.3)
State income taxes, net of federal benefit, current year		4,433	3.5			4,482	3.9			5,089	4.2
Change in unrecognized tax benefits		396	0.3			498	0.4			578	0.5
Provision adjustment from accounting method change		(247)	(0.2)			(1,181)	(1.0)			—	—
Tax credits		(2,865)	(2.3)			(1,362)	(1.2)			34	—
Acquisition costs		—	—			276	0.2			95	0.1
Excess tax benefit on stock options exercised and restricted stock awards vested		(464)	(0.3)			(503)	(0.4)			(436)	(0.4)
Other		(83)	(0.1)			(451)	(0.4)			(383)	(0.3)
Federal and state income tax expense	$	13,062	10.3	%	$	14,483	12.7	%	$	22,562	18.6	%

Schedule of Unrecognized tax benefits

	2023		2022
	(dollars in thousands)
Balance, beginning	$	2,680	$	2,182
Impact of tax positions taken during current year		712		758
Gross increase related to tax positions of prior years		110		75
Reduction as a result of a lapse of the applicable statute of limitations		(426)		(335)
Balance, ending	$	3,076	$	2,680

Schedule of Deferred Tax Assets and Liabilities

	2023		2022
	(dollars in thousands)
Deferred tax assets:
Historic tax credits	$	—	$	68
Low income housing tax credits		—		226
Net unrealized losses on securities available for sale and derivative instruments		18,127		21,319
Compensation		15,761		13,413
Loan/lease losses		20,628		20,466
Net operating loss carryforwards, federal and state		630		1,262
		55,146		56,754
Deferred tax liabilities:
Premises and equipment		7,206		6,271
Equipment financing leases		2,084		2,484
Acquisition fair value adjustments		3,983		3,816
Investment accretion		—		27
Deferred loan origination fees, net		1,515		1,624
Prepaid expense		1,749		1,534
Other		417		560
		16,954		16,316
Net deferred tax assets	$	38,192	$	40,438

Change in deferred income taxes

	2023		2022		2021
	(dollars in thousands)
Provision for income taxes	$	(946)	$	(4,682)	$	15,272
Statement of stockholders' equity- Other comprehensive income (loss)		3,192		(22,066)		(122)
	$	2,246	$	(26,748)	$	15,150