Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Provision (Benefit)

The income tax provision for the years ended December 31 is as follows:


	2021		2020		2019
	(dollars in thousands)
Current tax provision:
Federal	$	32,586	$	21,629	$	22,942
State	397		329		282
Total current tax provision	32,983		21,958		23,224
Deferred tax provision (benefit):
Federal	1,501		(5,070)		2,284

State	76		(132)		8
Total deferred tax provision	1,577		(5,202)		2,292
Total tax provision	$	34,560	$	16,756	$	25,516

Schedule of Effective Income Tax Rate Reconciliation

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:


	2021				2020				2019
	Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	36,292	21	%	$	18,943	21	%	$	27,478	21	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	326		—		155		—		229		—
Income from bank owned life insurance	(1,351)		(1)		(1,376)		(1)		(1,260)		(1)
Tax-exempt interest income, net	(846)		—		(1,117)		(1)		(1,298)		(1)
Tax credits	(127)		—		(44)		—		(7)		—

Other	266		—		195		—		374		—
Total tax provision	$	34,560	20	%	$	16,756	19	%	$	25,516	19	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:


	2021		2020
	(dollars in thousands)
Deferred tax assets:
Lease liability	$	9,489	$	9,928
Allowance for credit losses	19,597		21,483
Postretirement benefits other than pensions	235		242


Unrealized loss on securities available for sale	2,357		—
Net operating loss carryforward	75		385


Deferred compensation	1,969		1,723

Accrued interest on nonaccrual loans	779		644



Accrued incentives	2,591		2,182
Unfunded loan commitments & other reserves	1,363		1,576




Other	988		1,831
Total deferred tax assets	39,443		39,994
Deferred tax liabilities:

Loan origination fees and costs	(253)		(1,280)

Right of use asset	(8,589)		(9,037)
Unrealized gain on securities available for sale	—		(4,629)
Depreciation of assets	(1,725)		(2,103)
Section 197 intangibles	(1,107)		(540)
Other	(308)		(424)
Total deferred tax liabilities	(11,982)		(18,013)
Net deferred tax asset	$	27,461	$	21,981