INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense are as follows ($ in thousands):


	Years Ended December 31,
	2022		2021		2020
Current:
Federal	$	12,071	$	12,546	$	11,270
State	2,759		2,630		2,308
Deferred	940		1,739		(3,015)
Total income tax expense	$	15,770	$	16,915	$	10,563

Schedule of Effective Income Tax Rate Reconciliation

The Company's income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows ($ in thousands):


	Years Ended December 31,
	2022				2021				2020
	Amount		%		Amount		%		Amount		%
Income taxes at statutory rate	$	16,525	21	%	$	17,027	21	%	$	13,244	21	%
Tax-exempt income, net	(2,369)		(3)	%	(1,692)		(2)	%	(1,868)		(2)	%
Bargain purchase gain	—		—	%	—		—	%	(1,645)		(3)	%
Nondeductible expenses	391		—	%	29		—	%	188		—	%
State income tax, net of federal tax effect	2,251		3	%	2,299		3	%	1,600		3	%
Federal tax credits, net	(715)		(1)	%	(715)		(1)	%	(715)		(1)	%
Other, net	(313)		—	%	(33)		—	%	(241)		(1)	%
	$	15,770	17	%	$	16,915	17	%	$	10,563	17	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred income taxes included in the consolidated financial statements were as follows ($ in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Allowance for loan losses	$	9,581	$	7,566
Net operating loss carryover	24,531		2,109
Nonaccrual loan interest	600		1,447
Other real estate	894		247
Deferred compensation	1,205		1,267
Loan purchase accounting	2,554		966
Unrealized loss on available-for-sale securities	48,738		—
Lease liability	2,395		1,547
Other	3,299		2,421
	93,797		17,570
Deferred tax liabilities:
Unrealized gain on available-for-sale securities	—		(2,702)
Securities	(627)		(778)
Premises and equipment	(6,588)		(7,637)
Core deposit intangible	(7,628)		(6,255)
Goodwill	(2,388)		(2,121)
Right-of-use asset	(2,517)		(1,702)
Other	(596)		(485)
	(20,344)		(21,680)
Net deferred tax asset/(liability), included in other assets/(liabilities)	$	73,453	$	(4,110)