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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
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)202320222021
Current - federal$84,835 $114,346 $67,076 
Current - state23,463 27,889 13,712 
Deferred - federal(16,882)(27,408)30,321 
Deferred - state(3,586)(8,269)8,090 
$87,830 $106,558 $119,199 

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)202320222021
Federal income statutory rate21 %21 %21 %
Tax at federal income tax rate$74,956 $95,151 $104,166 
Change resulting from:
State income tax, net of federal benefit14,950 13,763 18,923 
Tax-exempt interest(1,907)(2,775)(3,479)
Increase in cash value of bank owned life insurance(1,701)(1,399)(997)
Excess tax (benefit) deficiency from stock compensation(518)(510)(277)
Nondeductible merger expenses— 167 142 
Other2,050 2,161 721 
Provision for income taxes$87,830 $106,558 $119,199 
The components of deferred income taxes are as follows:
December 31,
(dollars in thousands)20232022
Deferred tax assets
Allowance for credit losses$88,494 $64,742 
Deferred compensation13,822 13,287 
Deferred loan fees— 668 
Purchase accounting adjustments3,442 5,153 
Other real estate owned18 201 
Net operating loss tax carryforward12,779 14,070 
Tax credit carryforwards139 149 
Unrealized loss on securities available for sale11,218 14,635 
Capitalized costs, accrued expenses and other8,297 3,432 
Lease liability15,081 16,505 
153,290 132,842 
Deferred tax liabilities
Premises and equipment12,167 12,680 
Mortgage servicing rights34,989 30,903 
Subordinated debentures6,149 6,551 
Lease financing9,753 9,442 
Goodwill and intangible assets22,918 24,946 
Origination costs9,984 6,239 
Right of use lease asset12,854 14,280 
Deferred loan fees318 — 
109,132 105,041 
Net deferred tax asset (liability)$44,158 $27,801 

At December 31, 2023, the Company had federal net operating loss carryforwards of approximately $50.7 million which expire at various dates from 2028 to 2036. At December 31, 2023, the Company had state net operating loss carryforwards of approximately $50.0 million which expire at various dates from 2028 to 2036. 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 13 years. The state net operating loss carryforwards are subject to similar limitations and are expected to be recovered over the next 13 years. Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized.

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, 2023.

As described in Note 2 to the consolidated financial statements, in December 2021 Ameris Bank acquired Balboa Capital Corporation. The Company completed its analysis of the tax effects of this transaction during 2022. The consolidated balance sheet reflects this final analysis.

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 2020 and state taxing authorities for years before 2019.

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)20232022
Beginning Balance$1,001 $1,903 
Current Activity:
Additions for tax positions of prior years479 2,319 
Additions from acquisitions— 1,001 
Reductions for statutes of limitations expiring(870)— 
Settlements— (4,222)
Ending Balance$610 $1,001 

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 $133,000 and $11,000 as of December 31, 2023 and 2022, respectively. Unrecognized income tax benefits as of December 31, 2023 and 2022, that, if recognized, would affect the effective income tax rate totaled $582,000 and $919,000 (net of the federal benefit on state income tax issues), respectively. Accruals of penalties and interest resulted in a expense of $100 and $153,000 in 2023 and 2022, respectively. Ameris expects that $585,000 of uncertain income tax positions will be either settled or resolved during the next twelve months.