Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31, 2022, 2021, and 2020 are as follows:


($ in thousands)		2022		2021	2020
Current	- Federal	$	35,616	25,742	27,799
	- State	4,477		3,733	3,909
Deferred	- Federal	(1,658)		(4,247)	(8,893)
	- State	(152)		(553)	(1,161)
Total		$	38,283	24,675	21,654

Schedule of Effective Tax Rate Reconciliation

The following is a reconciliation of federal income tax expense at the statutory rate of 21% at December 31, 2022, December 31, 2021, and December 31, 2020, to the income tax provision reported in the financial statements.


($ in thousands)	2022		2021	2020
Tax provision at statutory rate	$	38,896	25,266	21,657
Increase (decrease) in income taxes resulting from:
Tax-exempt interest income	(1,976)		(1,589)	(1,050)
Low income housing and other tax credits	(669)		(1,229)	(772)
Bank-owned life insurance income	(1,511)		(589)	(532)
Non-deductible interest expense	26		14	23
State income taxes, net of federal benefit	3,369		2,472	2,117
Nondeductible merger expenses	107		242	—
Change in valuation allowance	(20)		(10)	(20)

Other, net	61		98	231
Total	$	38,283	24,675	21,654

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, which are included in Other Assets on the consolidated balance sheets, are as follows at December 31, 2022 and 2021:


($ in thousands)	2022		2021
Deferred tax assets:
Allowance for credit losses on loans	$	20,900	18,102
Allowance for credit losses on unfunded commitments	3,057		3,103
Excess book over tax pension plan cost	365		467
Deferred compensation	638		571
Federal & state net operating loss and tax credit carryforwards	197		206
Accruals, book versus tax	4,404		4,235
Pension	—		81
Unrealized losses on securities available for sale	102,046		7,369
Foreclosed real estate	3		20
Basis differences in assets acquired in FDIC transactions	—		504
Purchase accounting adjustments	2,982		4,076
Equity compensation	768		694
Partnership investments	652		310
Leases	151		108
SBA servicing asset	77		108
All other	—		101
Gross deferred tax assets	136,240		40,055
Less: Valuation allowance	(30)		(10)
Net deferred tax assets	136,210		40,045
Deferred tax liabilities:

Loan fees	(3,102)		(2,840)
Depreciable basis of fixed assets	(5,493)		(5,790)
Amortizable basis of intangible assets	(10,047)		(10,328)
Basis differences in assets acquired in FDIC transactions	(108)		—
Trust preferred securities	(416)		(453)
Pension	(12)		—
Gross deferred tax liabilities	(19,178)		(19,411)
Net deferred tax asset	$	117,032	20,634