Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 18 – INCOME TAXES

The provision for income taxes (credit) consists of the following:

		2022		2021			2020
Current expense	$	10,885	$	10,794		$	9,922
Deferred expense (benefit)		1,353		(524	)		(1,526	)
Totals	$	12,238	$	10,270		$	8,396

Effective tax rates differ from federal statutory rate of 21% that were applied to income before income taxes due to the following:

		2022			2021			2020
Statutory tax	$	15,295		$	13,026		$	10,557
Effect of nontaxable interest		(2,591	)		(2,274	)		(1,896	)
Bank owned life insurance, net		(380	)		(273	)		(167	)
Tax credits		(194	)		(200	)		23
Effect of nontaxable insurance premiums		(318	)		(322	)		(198	)
Stock compensation		(63	)		(9	)		12
Other		489			322			65
Actual tax	$	12,238		$	10,270		$	8,396

Deferred tax assets (liabilities) are comprised of the following:

		2022			2021
Deferred tax assets:
Allowance for credit losses	$	5,665		$	6,171
Net unrealized loss on securities available for sale		55,962			0
Deferred and accrued compensation		1,748			1,993
Deferred loan fees and costs		275			531
Nonaccrual loan interest income		648			571
Restricted stock		501			423
Lease liabilities		1,841			1,382
Other		0			158
Gross deferred tax assets	$	66,640		$	11,229
Deferred tax liabilities:
Depreciation and amortization	$	(1,485	)	$	(1,391	)
Net unrealized gain on securities available for sale		0			(2,461	)
Federal Home Loan Bank dividends		(904	)		(976	)
Purchase accounting adjustments		(1,862	)		(1,729	)
Mortgage servicing rights		(700	)		(715	)
Prepaid expenses		(365	)		(367	)
Lease right of use asset		(1,766	)		(1,336	)
Other		(234	)		0
Gross deferred tax liabilities		(7,316	)		(8,975	)
Net deferred tax asset	$	59,324		$	2,254

No valuation allowance for deferred tax assets was recorded at December 31, 2022 and 2021.

At December 31, 2022 and December 31, 2021, the Company had no unrecognized tax benefits recorded. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months.

The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2019. The tax years 2019—2021 remain open to examination by the U.S. taxing authority.