Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income tax is summarized as follows for the years ended December 31,:

	2023		2022		2021
Current	$	24,938	$	5,637	$	5,533
Deferred	3,012		9,203		3,145
Total income tax expense	$	27,950	$	14,840	$	8,678

A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal income tax rates to income before provision for income taxes is as follows for the years ended December 31,:

	2023		2022		2021
Income tax provision computed at U.S. federal statutory rate	$	27,611	$	15,545	$	10,887
State tax expense, net of U.S. federal effect	3,718		2,359		1,836
Tax exempt interest	(4,017)		(4,011)		(4,562)
Net increase in cash surrender value of BOLI	(405)		(353)		(268)
Non-deductible professional fees	—		216		648
Executive compensation	301		727		—
Other	742		357		137
Income tax provision	$	27,950	$	14,840	$	8,678
Effective tax provision rate	21.3%		20.0%		16.7%

Significant components of deferred tax assets and liabilities are as follows as of December 31,:

	2023		2022
Deferred tax assets:
Federal and state net operating loss	$	22,852	$	25,118
Allowance for credit losses	18,950		15,537
Unrealized loss on securities	13,920		14,235
Deferred compensation	3,005		4,756
Fair value adjustments on loans	1,626		2,428
Share-based compensation	2,529		2,208
Accrued expenses	881		1,320
Deferred loan fees	826		1,044
Lease liability	519		1,044
Fair value adjustments on deposits	99		326
Other real estate owned and foreclosed assets	—		7
Other	5,437		4,559
Total deferred tax assets	70,644		72,582
Deferred tax liabilities:
Mortgage servicing rights	18,079		17,465
Fair value adjustments on intangible assets	2,889		3,596
Prepaid expenses	1,193		1,143
Premises and equipment	1,281		918
Fair value adjustments on debt	606		700
FHLB stock	144		196
Other	193		209
Total deferred tax liabilities	24,385		24,227
Total deferred tax assets, net	$	46,259	$	48,355

As of December 31, 2023, we had net operating loss carryforwards for U.S. federal income tax purposes of approximately $105,392 which begin to expire in 2030. As of December 31, 2023, we had net operating loss carryforwards for state tax purposes of approximately $12,206 which begin to expire in 2024. Utilization of a portion of the net operating losses may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. We believe that all of the net operating loss carryforwards will be used prior to expiration.

We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2023 and 2022, we concluded there were no material uncertain tax positions.