Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31, 2021, 2020, and 2019 are as follows:


($ in thousands)		2021		2020	2019
Current	- Federal	$	25,742	27,799	19,920
	- State	3,733		3,909	2,499
Deferred	- Federal	(4,247)		(8,893)	1,572
	- State	(553)		(1,161)	239
Total		$	24,675	21,654	24,230

Schedule of Deferred Tax Assets and Liabilities

The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2021 and 2020 are presented below:


($ in thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses on loans	$	18,102	12,031
Allowance for credit losses on unfunded commitments	3,103		—
Excess book over tax pension plan cost	467		367
Deferred compensation	571		257
Federal & state net operating loss and tax credit carryforwards	206		282
Accruals, book versus tax	4,235		3,232
Pension	81		418
Unrealized losses on securities available for sale	7,369		—
Foreclosed real estate	20		123
Basis differences in assets acquired in FDIC transactions	504		647
Purchase accounting adjustments	4,076		—
Equity compensation	694		661
Partnership investments	310		258
Leases	108		120
SBA servicing asset	108		358
All other	101		3
Gross deferred tax assets	40,055		18,757
Less: Valuation allowance	(10)		(14)
Net deferred tax assets	40,045		18,743
Deferred tax liabilities:

Loan fees	(2,840)		(1,011)
Depreciable basis of fixed assets	(5,790)		(4,809)
Amortizable basis of intangible assets	(10,328)		(7,965)
FHLB stock dividends	—		(236)
Trust preferred securities	(453)		(473)
Unrealized gain on securities available for sale	—		(4,699)
Gross deferred tax liabilities	(19,411)		(19,193)
Net deferred tax asset (liability) - included in other assets (liabilities)	$	20,634	(450)

Schedule of Effective Tax Rate Reconciliation

The following is a reconcilement of federal income tax expense at the statutory rate of 21% at December 31, 2021 and December 31, 2020 and December 31, 2019, to the income tax provision reported in the financial statements.


($ in thousands)	2021		2020	2019
Tax provision at statutory rate	$	25,266	21,657	24,418
Increase (decrease) in income taxes resulting from:
Tax-exempt interest income	(1,589)		(1,050)	(1,186)
Low income housing tax credits	(1,229)		(772)	(756)
Bank-owned life insurance income	(589)		(532)	(538)
Non-deductible interest expense	14		23	43
State income taxes, net of federal benefit	2,472		2,117	2,178
Nondeductible merger expenses	242		—	—
Change in valuation allowance	(10)		(20)	4
Impact of tax reform	—		—	(73)
Other, net	98		231	140
Total	$	24,675	21,654	24,230