INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2023, 2022 and 2021 consisted of the following:

(dollars in thousands)	2023		2022		2021
Current federal	$	16,171	$	22,825	$	21,329
Deferred federal	1,302		(2,327)		(1,249)
Current state	(131)		1,297		1,892
Deferred state	(776)		(448)		(261)
Total income tax expense	$	16,566	$	21,347	$	21,711

Schedule of Differences In Taxes From Continuing Operations

The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:

(dollars in thousands)	2023		2022		2021
Income taxes at statutory federal rate of 21%	$	23,170	$	26,284	$	24,663
Increase (decrease) in taxes resulting from:
Tax exempt income	(4,226)		(4,438)		(2,822)
Nondeductible expense	269		159		116
State income tax, net of federal tax effect	(716)		671		1,288
Captive insurance premium income	(261)		(417)		(303)
Tax credits	(713)		(586)		(578)
Bank owned life insurance	(658)		(78)		(596)
Long-term incentive plan and deferred compensation	(715)		(530)		(274)
Nondeductible compensation expense	784		181		156
Other	(368)		101		61
Total income tax expense	$	16,566	$	21,347	$	21,711

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2023 and 2022 consisted of the following:

(dollars in thousands)	2023		2022
Deferred tax assets:
Bad debts	$	18,384	$	18,561
Pension and deferred compensation liability	1,823		2,272
Nonaccrual loan interest	494		256
Long-term incentive plan	2,342		2,894
Lease liability	1,199		1,354
Deferred loan fees	781		572
Accrued legal reserve	635		819
Net operating loss carryforward	913		0
Other	591		1,130
	27,162		27,858
Deferred tax liabilities:
Depreciation	3,645		4,257
Loan servicing rights	570		694
State taxes	949		786
Intangible assets	1,270		1,270
REIT spillover dividend	2,140		1,290
Prepaid expenses	801		988
Lease right of use	1,199		1,354
Other	480		585
	11,054		11,224
Valuation allowance	0		0
Net deferred tax asset	$	16,108	$	16,634