Note 14 - Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Notes Tables

Schedule of Federal and state income tax expense

	2022		2021		2020
	(dollars in thousands)
Current	$	19,165	$	7,290	$	27,237
Deferred		(4,682)		15,272		(14,530)
	$	14,483	$	22,562	$	12,707

Reconciliation of the expected federal income tax expense

	Year Ended December 31,
	2022				2021				2020
			% of				% of				% of
			Pretax				Pretax				Pretax
	Amount		Income		Amount		Income		Amount		Income
	(dollars in thousands)
Computed "expected" tax expense	$	23,845	21.0	%	$	25,508	21.0	%	$	15,391	21.0	%
Tax exempt income, net		(10,689)	(9.4)			(7,537)	(6.2)			(5,943)	(8.1)
Bank-owned life insurance		(432)	(0.4)			(386)	(0.3)			(308)	(0.4)
State income taxes, net of federal benefit, current year		4,482	3.9			5,089	4.2			3,622	4.9
Change in unrecognized tax benefits		498	0.4			578	0.5			546	0.7
Goodwill impairment		—	—			—	—			105	0.1
Provision adjustment from accounting method change		(1,181)	(1.0)			—	—			—	—
Tax credits		(1,362)	(1.2)			34	—			(456)	(0.6)
Acquisition costs		276	0.2			95	0.1			—	—
Excess tax benefit on stock options exercised and restricted stock awards vested		(503)	(0.4)			(436)	(0.4)			(242)	(0.3)
Re-measurement of deferred tax asset to incorporate newly enacted tax rates		—	—			—	—			207	0.3
Other		(451)	(0.4)			(383)	(0.3)			(215)	(0.3)
Federal and state income tax expense	$	14,483	12.7	%	$	22,562	18.6	%	$	12,707	17.3	%

Schedule of Unrecognized tax benefits

	2022		2021
	(dollars in thousands)
Balance, beginning	$	2,182	$	1,893
Impact of tax positions taken during current year		758		1,326
Gross increase (decrease) related to tax positions of prior years		75		(646)
Reduction as a result of a lapse of the applicable statute of limitations		(335)		(391)
Balance, ending	$	2,680	$	2,182

Schedule of Deferred Tax Assets and Liabilities

	2022		2021
	(dollars in thousands)
Deferred tax assets:
Historic tax credits	$	68	$	68
Low income housing tax credits		226		—
Net unrealized losses on securities available for sale and derivative instruments		21,319		—
Compensation		13,413		11,912
Loan/lease losses		20,466		19,023
Net operating loss carryforwards, federal and state		1,262		1,354
Other		—		17
		56,754		32,374
Deferred tax liabilities:
Net unrealized gains on securities available for sale and derivative instruments		—		747
Premises and equipment		6,271		6,099
Equipment financing leases		2,484		6,462
Acquisition fair value adjustments		3,816		3,269
Investment accretion		27		27
Deferred loan origination fees, net		1,624		1,403
Other		2,094		677
		16,316		18,684
Net deferred tax assets	$	40,438	$	13,690

Change in deferred income taxes

	2022		2021		2020
	(dollars in thousands)
Provision for income taxes	$	(4,682)	$	15,272	$	(14,530)
Net deferred tax assets resulting from sale of other subsidiary		—		—		363
Statement of stockholders' equity- Other comprehensive income (loss)		(22,066)		(122)		837
	$	(26,748)	$	15,150	$	(13,330)