Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 are as follows:


(in thousands)	2022		2021		2020
Current tax expense:
Federal	$	15,609	$	23,225	$	7,401
State	1,116		4,681		2,163



Deferred tax expense (benefit)	(104)		5,803		(12,176)
Total income tax expense (benefit)	$	16,621	$	33,709	$	(2,612)

Schedule of Effective Income Tax Rate Reconciliation

The following table shows a reconciliation of the income tax expense (benefit) at the statutory federal income tax rate to the Company’s effective income tax rate for the three years ended December 31, 2022:


	2022				2021				2020
(in thousands, except percentages)	Amount		%		Amount		%		Amount		%
Tax expense (benefit) calculated at the statutory federal income tax rate	$	16,503	21.00	%	$	30,244	21.00	%	$	(910)	21.00	%
Increases (decreases) resulting from:


Non-taxable interest income	(342)		(0.44)	%	(350)		(0.24)	%	(634)		14.62	%
Non-taxable BOLI income	(1,135)		(1.44)	%	(1,146)		(0.80)	%	(1,196)		27.59	%
Stock-based compensation	(251)		(0.32)	%	(856)		(0.59)	%	(55)		1.27	%
State and city income taxes, net of federal income tax benefit	882		1.12	%	3,697		2.57	%	1,709		(39.43)	%
Rate differential on deferred items	(245)		(0.31)	%	769		0.53	%	(1,907)		44.00	%
Noncontrolling interest	283		0.36	%	548		0.38	%	—		—	%
Disallowed interest expense allocable to tax exempt securities and other expenses	891		1.13	%	421		0.29	%	396		(9.14)	%
Other, net	35		0.05	%	382		0.27	%	(15)		0.36	%
Total income tax expense (benefit)	$	16,621	21.15	%	$	33,709	23.41	%	$	(2,612)	60.27	%

Schedule of Deferred Tax Assets

The composition of the net deferred tax asset is as follows:


	December 31,
(in thousands)	2022		2021
Tax effect of temporary differences
Lease liability	$	37,345	$	34,935
Net unrealized losses/(gains) in other comprehensive (loss) income	27,663		(4,833)
Allowance for credit losses	19,811		15,669

Deferred compensation	5,090		4,258
Stock-based compensation expense	1,333		865
Dividend income	(645)		408
Depreciation and amortization	(2,869)		(2,892)
Goodwill amortization	(4,949)		(4,707)
Right-of-use asset	(35,979)		(34,491)
Other	1,903		2,089
Net deferred tax assets	$	48,703	$	11,301