Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions

An allocation of federal and state income taxes between current and deferred portions is presented below:


	Three Months Ended June 30,
	2022		2021
Current	$	3,569	$	9,541
Deferred	3,148		3,899
Total	$	6,717	$	13,440

	Six Months Ended June 30,
	2022		2021
Current	$	3,569	$	15,490
Deferred	12,461		13,538
Total	$	16,030	$	29,028

Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes

The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30,
	2022				2021
Federal taxes calculated at statutory rate	$	5,475	21.0	%	$	11,916	21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	1,582		6.1	%	1,879		3.3	%


Benefit from equity based compensation	(15)		(0.1)	%	(124)		(0.2)	%
Municipal interest income, net of interest disallowance	(444)		(1.7)	%	(419)		(0.7)	%
Bank-owned life insurance	(79)		(0.3)	%	(82)		(0.1)	%

Offering costs	—		—	%	127		0.2	%
Section 162(m) limitation	40		0.2	%	21		—	%
Other	158		0.6	%	121		0.2	%
Income tax expense, as reported	$	6,717	25.8	%	$	13,440	23.7	%

	Six Months Ended June 30,
	2022				2021
Federal taxes calculated at statutory rate	$	14,830	21.0	%	$	26,293	21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	2,533		3.6	%	3,629		2.9	%
Benefit from equity based compensation	(306)		(0.4)	%	(345)		(0.3)	%
Municipal interest income, net of interest disallowance	(888)		(1.3)	%	(843)		(0.7)	%
Bank-owned life insurance	(153)		(0.2)	%	(166)		(0.1)	%

Offering costs	—		—	%	127		0.1	%
Section 162(m) limitation	162		0.1	%	248		0.2	%
Other	(148)		(0.1)	%	85		0.1	%
Income tax expense, as reported	$	16,030	22.7	%	$	29,028	23.2	%

Schedule of Net Deferred Tax (Liabilities) Assets

The components of the net deferred tax (liabilities) assets at June 30, 2022 and December 31, 2021, are as follows:


	June 30,		December 31,
	2022		2021
Deferred tax assets:
Allowance for credit losses	$	36,547	$	35,233
Operating lease liabilities	12,346		12,478
Net operating loss	1,392		1,370
Amortization of core deposit intangibles	115		—
Deferred compensation	4,794		5,484
Unrealized loss on debt securities	43,504		—

Unrealized loss on cash flow hedges	—		205
Other assets	7,150		8,301
Subtotal	105,848		63,071
Deferred tax liabilities:
FHLB stock dividends	$	(484)	$	(484)
Operating leases - right of use assets	(11,117)		(11,287)
Depreciation	(7,915)		(7,938)
Amortization of core deposit intangibles	—		(116)
Unrealized gain on equity securities	(2,333)		(2,407)
Unrealized gain on cash flow hedges	(168)		—
Unrealized gain on debt securities	—		(1,324)
Mortgage servicing rights	(41,345)		(30,098)
Goodwill	(14,806)		(13,743)
Other liabilities	(2,507)		(2,494)
Subtotal	(80,675)		(69,891)
Net deferred tax assets (liabilities)	$	25,173	$	(6,820)