Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is as follows:


	For the Year Ended December 31,
(In thousands)	2022		2021		2020
Current
Federal	$	2,770	$	23,661	$	21,688
State	(1,266)		3,882		4,471

Deferred
Federal	23,710		6,800		(2,697)
State	6,415		(8)		(644)
	$	31,629	$	34,335	$	22,818

Schedule of Effective Income Tax Rate Reconciliation

The difference between the total expected tax expense (computed by applying the U.S. Federal tax rate of 21% to pretax income) and the reported income tax provision relating to income before income taxes is as follows:


	For the Year Ended December 31,
(In thousands)	2022		2021		2020
Tax rate applied to income before income taxes	$	29,009	$	33,335	$	21,122
Increase (decrease) resulting from the effects of:
Tax law change	—		—		(375)
Nondeductible acquisition costs	924		419		199
Tax exempt interest on loans, obligations of states and political subdivisions and bank owned life insurance	(1,341)		(1,276)		(1,110)
State income taxes	(1,081)		(813)		(804)
Tax credit investments	(406)		(213)		(72)
Stock compensation	(992)		(1,239)		(111)
Executive compensation disallowance	402		253		—
Other	(36)		(5)		142
Federal tax provision	26,479		30,461		18,991
State tax provision	5,150		3,874		3,827
Total income tax provision	$	31,629	$	34,335	$	22,818

Schedule of Deferred Tax Assets and Liabilities

The following is a summary of the significant components of the Company's deferred tax assets and liabilities as of:


	December 31,
(In thousands)	2022		2021
Allowance for credit losses	$	31,097	$	22,686

Other real estate owned	591		52
Accrued stock compensation	2,931		2,323
Federal tax loss carryforward	3,150		2,138
State tax loss carryforward	1,117		1,226
Lease liabilities	12,868		9,399
Net unrealized securities losses	59,392		2,287
Deferred compensation	2,766		3,276
Accrued interest and fee income	16,035		—
Other	1,755		477
Gross deferred tax assets	131,702		43,864
Less: Valuation allowance	—		—
Deferred tax assets net of valuation allowance	131,702		43,864

Core deposit base intangible	(18,767)		(3,134)
Accrued interest and fee income	—		(1,660)

Premises and equipment	(2,214)		(776)
Right of use assets	(12,039)		(8,645)
Other	(4,225)		(2,328)
Gross deferred tax liabilities	(37,245)		(16,543)
Net deferred tax assets	$	94,457	$	27,321

Summary of Income Tax Examinations

The following are the major tax jurisdictions in which the Company operates and the earliest tax year, exclusive of the impact of the net operating loss carryforwards, subject to examination:


Jurisdiction			Tax Year
United States of America			2019
Florida			2019