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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
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)202420232022
Current - federal$117,978 $84,835 $114,346 
Current - state19,275 23,463 27,889 
Total Current Income Tax Expense$137,253 $108,298 $142,235 
Deferred - federal$(18,918)$(16,882)$(27,408)
Deferred - state(1,160)(3,586)(8,269)
Total Deferred Income Tax Expense$(20,078)$(20,468)$(35,677)
Total Income Tax Expense$117,175 $87,830 $106,558 
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)202420232022
Federal income statutory rate21 %21 %21 %
Tax at federal income tax rate$99,931 $74,956 $95,151 
Change resulting from:
State income tax, net of federal benefit14,068 14,950 13,763 
Tax-exempt interest(1,866)(1,907)(2,775)
Increase in cash value of bank owned life insurance(2,210)(1,701)(1,399)
Excess tax benefit from stock compensation(132)(518)(510)
Nondeductible merger expenses— — 167 
BOLI policy redemptions4,488 — — 
Other2,896 2,050 2,161 
Provision for income taxes$117,175 $87,830 $106,558 

The components of deferred income taxes are as follows:
December 31,
(dollars in thousands)20242023
Deferred tax assets
Allowance for credit losses$90,357 $88,494 
Deferred compensation14,421 13,822 
Deferred loan fees435 — 
Purchase accounting adjustments3,112 3,442 
Other real estate owned106 18 
Net operating loss tax carryforward11,319 12,779 
Tax credit carryforwards117 139 
Unrealized loss on securities available for sale8,906 11,218 
Capitalized costs, accrued expenses and other7,550 8,297 
Lease liability13,319 15,081 
149,642 153,290 
Deferred tax liabilities
Premises and equipment10,025 12,167 
Mortgage servicing rights22,135 34,989 
Subordinated debentures5,603 6,149 
Lease financing7,239 9,753 
Goodwill and intangible assets19,998 22,918 
Origination costs11,100 9,984 
Right of use lease asset11,243 12,854 
Deferred loan fees— 318 
87,343 109,132 
Net deferred tax asset$62,299 $44,158 

At December 31, 2024, the Company had federal net operating loss carryforwards of approximately $44.8 million which expire at various dates from 2028 to 2036. At December 31, 2024, the Company had state net operating loss carryforwards of approximately $43.9 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 12 years. The state net operating loss carryforwards are subject to similar limitations and are expected to be recovered over the next 12 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, 2024.

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 2021 and state taxing authorities for years before 2020.

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)20242023
Beginning Balance$610 $1,001 
Current Activity:
Additions for tax positions of prior years277 479 
Reductions for statutes of limitations expiring(105)(870)
Settlements(757)— 
Ending Balance$25 $610 

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 $3,000 and $133,000 as of December 31, 2024 and 2023, respectively. Unrecognized income tax benefits as of December 31, 2024 and 2023, that, if recognized, would affect the effective income tax rate totaled $22,000 and $582,000 (net of the federal benefit on state income tax issues), respectively. Accruals of penalties and interest resulted in a expense of $98,000 and $100 in 2024 and 2023, respectively. Ameris expects that $25,000 of uncertain income tax positions will be either settled or resolved during the next twelve months.