Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

	Year Ended December 31,
(Dollars in thousands)	2021			2020			2019
Income tax expense / (benefit)
Current:
Federal	$	12,595		$	12,174		$	14,798
State		10,270			9,005			7,733
Total current expense		22,865			21,179			22,531
Deferred:
Federal		59			(1,115	)		(3,500	)
State		(939	)		(847	)		246
Total current deferred benefit		(880	)		(1,962	)		(3,254	)
Provision for income tax expense	$	21,985		$	19,217		$	19,277

Reconciliation of Federal and State Income Tax Expense with Statutory Corporate Tax Rate

The combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows:

	Year Ended December 31,
	2021						2020						2019
(Dollars in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Effective income tax rate
Federal statutory rate	$	18,548			21.00	%	$	16,370			21.00	%	$	15,816			21.00	%
State taxes, net of Federal income tax benefit		7,370			8.34	%		6,445			8.27	%		6,304			8.40	%
Low-income housing tax credits		(3,116	)		(3.53	%)		(2,655	)		(3.41	%)		(2,078	)		(2.80	%)
Bank owned life insurance		(471	)		(0.53	%)		(444	)		(0.57	%)		(460	)		(0.60	%)
Tax-exempt interest income		(347	)		(0.39	%)		(350	)		(0.45	%)		(358	)		(0.50	%)
Other, net		1			(0.00	%)		(149	)		(0.19	%)		53			0.10	%
Total provision for income tax expense and effective tax rate	$	21,985			24.89	%	$	19,217			24.65	%	$	19,277			25.60	%

Components of Net Deferred Income Tax Assets

The nature and components of the Company’s net deferred income tax assets are as follows:

	December 31,
(Dollars in thousands)	2021			2020
Deferred income tax assets:
Allowance for credit losses	$	18,129		$	17,248
Deferred compensation		15,339			13,707
Accrued liabilities		9,415			8,526
State income taxes		2,157			1,891
Lease liabilities		1,222			1,454
Unrealized losses on debt securities		945			-
SBA PPP loan fee income		764			1,367
Acquired net operating losses		614			643
Low-income housing tax investments		503			384
Acquired loans fair valuation		197			237
Acquired OREO fair valuation		108			108
Other		19			7
Total deferred income tax assets		49,412			45,572
Deferred income tax liabilities:
Commercial leasing	$	(17,892	)	$	(17,183	)
Unrealized gains on debt securities		-			(5,156	)
Premises and equipment		(1,860	)		(1,684	)
Right of use leasing asset		(1,197	)		(1,428	)
Core deposit intangible asset		(1,006	)		(1,186	)
Deferred loan and lease costs		(869	)		(692	)
Accretion on investment securities		(523	)		(588	)
FHLB dividends		(348	)		(348	)
Prepaid assets		(43	)		(45	)
Other		(132	)		(169	)
Total deferred income tax liabilities		(23,870	)		(28,479	)
Net deferred income tax assets	$	25,542		$	17,093