Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The following table shows the composition of income tax expense.


Year Ended December 31 (Dollars in thousands)	2020		2019		2018
Current:
Federal	$	42,411	$	28,130	$	20,167
State	6,629		5,739		2,996
Total current	49,040		33,869		23,163
Deferred:
Federal	(21,865)		(5,135)		(875)
State	(2,295)		(595)		1,200
Deferred tax liability remeasurement	—		—		(875)
Total deferred	(24,160)		(5,730)		(550)
Total provision	$	24,880	$	28,139	$	22,613

Schedule of reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate

The following table shows the reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate (21%) to income before income taxes.


	2020				2019				2018
Year Ended December 31 (Dollars in thousands)	Amount		Percent of Pretax Income		Amount		Percent of Pretax Income		Amount		Percent of Pretax Income
Statutory federal income tax	$	22,332	21.0	%	$	25,232	21.0	%	$	22,056	21.0	%
(Decrease) increase in income taxes resulting from:
Tax-exempt interest income	(439)		(0.4)		(552)		(0.5)		(650)		(0.6)
State taxes, net of federal income tax benefit	3,424		3.2		4,064		3.4		3,315		3.2
Deferred tax liability remeasurement	—		—		—		—		(875)		(0.8)
Other	(437)		(0.4)		(605)		(0.5)		(1,233)		(1.3)
Total	$	24,880	23.4	%	$	28,139	23.4	%	$	22,613	21.5	%

Schedule of deferred tax assets and liabilities

The following table shows the composition of deferred tax assets and liabilities as of December 31, 2020 and 2019.


(Dollars in thousands)	2020		2019
Deferred tax assets:
Allowance for credit losses	$	35,696	$	28,792
Tax credit carryforward	8,606		—
Operating lease liability	5,704		5,899
Accruals for employee benefits	2,963		2,842

Capitalized loan costs	893		—
Mortgage servicing	173		—

Other	678		222
Total deferred tax assets	54,713		37,755
Deferred tax liabilities:
Differing depreciable bases in premises and leased equipment	13,118		18,614
Right of use assets - leases	5,737		5,899
Differing bases in assets related to acquisitions	4,160		4,092
Tax advantaged partnerships	3,770		4,383
Net unrealized gains on securities available-for-sale	5,827		1,640
Mortgage servicing	—		394
Capitalized loan costs	—		1,207
Prepaid expenses	334		297
Other	300		544
Total deferred tax liabilities	33,246		37,070
Net deferred tax asset	$	21,467	$	685

Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits

The following table shows a reconciliation of the beginning and ending amounts of unrecognized tax benefits.


(Dollars in thousands)	2020		2019		2018
Balance, beginning of year	$	—	$	—	$	1,112
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	—		—		—
Reductions for tax positions of prior years	—		—		—
Reductions due to lapse in statute of limitations	—		—		—
Settlements	—		—		(1,112)
Balance, end of year	$	—	$	—	$	—