Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Components of Provision for Income Taxes

The components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses, are as follows:

(in thousands)	2022		2021		2020
Current federal income tax expense	$	14,882	$	16,160	$	12,884
Current state income tax expense		1,096		4,214		786
Deferred federal income tax expense (benefit)		194		1,138		(2,900	)
Deferred state income tax expense		3,056		1,192		0
Effect of Kentucky tax legislation benefit		0		0		(9	)
Total income tax expense	$	19,228	$	22,704	$	10,761

Reconciliation of Income Tax Expense at Statutory Rate to Actual Income Tax Expense

A reconciliation of income tax expense at the statutory rate to our actual income tax expense is shown below:

(in thousands)	2022					2021					2020
Computed at the statutory rate	$	21,219		21.00	%	$	23,235		21.00	%	$	14,755		21.00	%
Adjustments resulting from:
Tax-exempt interest		(717	)	(0.70	)		(690	)	(0.62	)		(547	)	(0.78	)
Housing and new markets credits		(3,105	)	(3.07	)		(3,939	)	(3.56	)		(4,194	)	(5.97	)
Bank owned life insurance		(367	)	(0.36	)		(382	)	(0.35	)		(277	)	(0.39	)
ESOP dividend deduction		(240	)	(0.24	)		(233	)	(0.21	)		(221	)	(0.32	)
Stock option exercises and restricted stock vesting		(1	)	0.00			25		0.02			(10	)	(0.01	)
Effect of KY tax legislation		0		0.00			0		0.00			(7	)	(0.01	)
State income taxes		3,281		3.25			4,270		3.86			621		0.88
Split dollar life insurance		(184	)	(0.19	)		212		0.19			529		0.75
Other		(658	)	(0.66	)		206		0.19			112		0.16
Total	$	19,228		19.03	%	$	22,704		20.52	%	$	10,761		15.31	%

Components of Net Deferred Tax Asset (Liability)

The components of the net deferred tax asset (liability) as of December 31 are as follows:

(in thousands)	2022			2021
Deferred tax assets:
Allowance for credit losses	$	11,472		$	10,418
Interest on nonaccrual loans		362			547
Accrued expenses		2,969			2,960
Unrealized losses on AFS securities		45,339			1,664
Allowance for other real estate owned		223			268
State net operating loss carryforward		0			2,308
Lease liabilities		4,398			3,245
Other		485			973
Total deferred tax assets		65,248			22,383
Deferred tax liabilities:
Depreciation and amortization		(14,859	)		(14,604	)
FHLB stock dividends		(827	)		(961	)
Loan fee income		(1,136	)		(621	)
Mortgage servicing rights		(2,113	)		(1,690	)
Limited partnership investments		(710	)		(648	)
Right of use assets		(4,259	)		(3,031	)
Other		(1,466	)		(1,374	)
Total deferred tax liabilities		(25,370	)		(22,929	)
Net deferred tax asset (liability)	$	39,878		$	(546	)