Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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)	2024		2023			2022
Income tax expense (benefit)
Current:
Federal	$	14,196	$	23,025		$	10,638
State		8,574		10,817			9,683
Total current income tax expense		22,770		33,842			20,321
Deferred:
Federal		7,284		(6,546	)		3,744
State		3,733		943			586
Total deferred income tax expense (benefit)		11,017		(5,603	)		4,330
Total provision for income tax expense	$	33,787	$	28,239		$	24,651

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,
	2024						2023						2022
(Dollars in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Effective income tax rate
Federal statutory rate	$	25,671			21.00	%	$	24,476			21.00	%	$	20,946			21.00	%
State taxes, net of federal income tax benefit		9,730			7.96	%		9,290			7.97	%		8,112			8.13	%
Low-income housing tax credits		(608	)		(0.50	%)		(3,528	)		(3.03	%)		(3,031	)		(3.04	%)
Compensation expense		(137	)		(0.11	%)		(267	)		(0.23	%)		(578	)		(0.58	%)
Bank-owned life insurance		(521	)		(0.43	%)		(1,338	)		(1.15	%)		(494	)		(0.49	%)
Tax-exempt interest income		(512	)		(0.42	%)		(470	)		(0.40	%)		(326	)		(0.32	%)
Other, net		164			0.14	%		76			0.07	%		22			0.02	%
Total income tax expense and effective tax rate	$	33,787			27.64	%	$	28,239			24.23	%	$	24,651			24.72	%

Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The components of net deferred tax assets and liabilities at the periods shown are summarized as follows:

	December 31,
(Dollars in thousands)	2024			2023
Deferred tax assets:
Allowance for credit losses	$	23,185		$	23,386
Deferred compensation		23,849			21,562
Unrealized losses on debt securities		8,250			5,377
Accrued liabilities		3,685			3,986
Tax credit carry forward		2,402			2,911
State income taxes		1,793			2,271
Lease liabilities		692			838
Acquired net operating losses		476			506
Low-income housing tax investments		-			447
Acquired loans fair valuation		80			89
Acquired OREO fair valuation		108			108
Other		-			2
Total deferred tax assets		64,520			61,483
Deferred tax liabilities:
Commercial leasing	$	(25,704	)	$	(16,017	)
Premises and equipment		(2,034	)		(1,740	)
Deferred loan and lease costs		(936	)		(1,000	)
Right of use leasing asset		(659	)		(802	)
Core deposit intangible asset		(499	)		(661	)
Accretion on investment securities		(1,200	)		(659	)
FHLB dividends		(348	)		(348	)
Investments		(225	)		(225	)
Prepaid assets		(17	)		(52	)
Total deferred tax liabilities		(31,622	)		(21,504	)
Net deferred tax assets	$	32,898		$	39,979