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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax expense in the consolidated statements of income consists of the following:
For the Years Ended December 31,
(dollars in thousands)202120202019
Current - federal$67,076 $73,705 $21,994 
Current - state13,712 12,479 5,328 
Deferred - federal30,321 (7,881)19,639 
Deferred - state8,090 (47)3,182 
$119,199 $78,256 $50,143 

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:
For the Years Ended December 31,
(dollars in thousands)202120202019
Federal income statutory rate21 %21 %21 %
Tax at federal income tax rate$104,166 $71,460 $44,433 
Change resulting from:
State income tax, net of federal benefit18,923 9,812 7,389 
Tax-exempt interest(3,479)(3,726)(2,911)
Increase in cash value of bank owned life insurance(997)(594)(581)
Excess tax (benefit) deficiency from stock compensation(277)371 (108)
Nondeductible merger expenses142 2 799 
Other721 2,827 1,122 
Benefit related to carryback claims resulting from the CARES Act— (1,896)— 
Provision for income taxes$119,199 $78,256 $50,143 

The components of deferred income taxes are as follows:
December 31,
(dollars in thousands)20212020
Deferred tax assets
Allowance for credit losses$50,132 $59,643 
Deferred compensation7,816 5,722 
Deferred loan fees1,593 5,224 
Purchase accounting adjustments14,008 17,266 
Other real estate owned334 2,647 
Net operating loss tax carryforward35,082 17,176 
Tax credit carryforwards315 931 
Capitalized costs, accrued expenses and other2,208 2,815 
Lease liability16,186 19,314 
127,674 130,738 
December 31,
(dollars in thousands)20212020
Deferred tax liabilities
Premises and equipment13,130 14,337 
Mortgage servicing rights52,076 35,806 
Subordinated debentures6,818 6,169 
Lease financing42,865 — 
Goodwill and intangible assets29,393 13,165 
Unrealized gain on securities available-for-sale4,498 9,263 
Right of use lease asset14,001 18,684 
162,781 97,424 
Net deferred tax asset (liability)$(35,107)$33,314 

At December 31, 2021, the Company had federal net operating loss carryforwards of approximately $139.5 million which expire at various dates from 2027 to 2035. At December 31, 2021, the Company had state net operating loss carryforwards of approximately $96.5 million which expire at various dates from 2027 to 2040. The federal net operating loss carryforwards are subject to limitations pursuant to Section 382 of the Internal Revenue Code and are expected to be recovered over the next 14 years. The state net operating loss carryforwards are subject to similar limitations and are expected to be recovered over the next 14 years. Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized.

Section 2303(b) of the CARES Act allows for certain net operating losses generated after December 31, 2017, but before December 31, 2021, to be carried back to the five tax years preceding the loss. The Company carried back approximately $13.2 million of eligible net operating losses to preceding tax years. The Company recorded a benefit of $1.9 million due to the carryback of these net operating losses for the tax year ended December 31, 2020.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets at December 31, 2021.

As described in Note 2 to the consolidated financial statements, in December 2021 Ameris Bank acquired Balboa Capital Corporation. As of the date the financial statements were issued, the Company has recorded provisional amounts but has not completed its analysis of the tax effects of this transaction. The Company expects to complete this analysis within the measurement period and the balance sheet will be updated.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the various states. The Company is no longer subject to examination by federal taxing authorities for years before 2018 and state taxing authorities for years before 2017.

Although Ameris is unable to determine the ultimate outcome of current and future events, Ameris believes that the liability recorded for uncertain tax positions is adequate. A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows.

For the Years Ended December 31,
(dollars in thousands)20212020
Beginning Balance$— $— 
Current Activity:
Additions for tax positions of prior years1,903 — 
Ending Balance$1,903 $— 
Accrued interest and penalties related to unrecognized income tax benefits are included as a component of income tax expense. Accrued interest and penalties on unrecognized income tax benefits totaled $331,000 as of December 31, 2021. Unrecognized income tax benefits as of December 31, 2021, that, if recognized, would affect the effective income tax rate totaled $1.8 million (net of the federal benefit on state income tax issues). Accruals of penalties and interest resulted in a expense of $248,000 in 2021. Ameris expects that all uncertain income tax positions will be either settled or resolved during the next twelve months.

The Company did not record any interest and penalties related to income taxes for the years ended December 31, 2020 and 2019, and the Company did not have any amount accrued for interest and penalties at December 31, 2020 and 2019.