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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income tax expense are as follows:
($ in thousands)
Years Ended December 31,
202420232022
Current:
Federal$14,641 $11,754 $12,071 
State2,926 2,587 2,759 
Deferred 3,204 7,006 940 
Total income tax expense$20,771 $21,347 $15,770 
The Company's income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:
($ in thousands)
Years Ended December 31,
202420232022
Amount%Amount%Amount%
Income taxes at statutory rate$20,573 21 %$20,289 21 %$16,525 21 %
Tax-exempt income, net(1,196)(1)%(1,696)(2)%(2,369)(3)%
Nondeductible expenses183 — %144 — %391 — %
State income tax, net of federal tax effect3,492 4 %3,064 4 %2,251 3 %
Federal tax credits, net(715)(1)%(715)(1)%(715)(1)%
Other, net(1,566)(2)%261 — %(313)— %
$20,771 21 %$21,347 22 %$15,770 20 %
The components of deferred income taxes included in the consolidated financial statements were as follows:
($ in thousands)December 31,
20242023
Deferred tax assets:
Allowance for credit losses$14,060 $13,276 
Net operating loss carryover23,753 27,256 
Nonaccrual loan interest919 826 
Other real estate659 1,092 
Deferred compensation1,126 1,161 
Loan purchase accounting4,461 6,438 
Unrealized loss on available-for-sale securities38,649 38,776 
Lease liability1,958 2,037 
Other4,588 5,014 
90,173 95,876 
Deferred tax liabilities:  
Securities(271)(560)
Premises and equipment(9,048)(9,017)
Core deposit intangible(14,132)(16,094)
Goodwill(2,971)(2,651)
Right-of-use asset(1,777)(1,929)
Other(1,142)(1,461)
(29,341)(31,712)
Net deferred tax asset/(liability), included in other assets$60,832 $64,164 
With the acquisition of Baldwin Bancshares, Inc. in 2013, BCB Holding Company, Inc. in 2014, Gulf Coast Community Bank in 2017, Sunshine Financial, Inc. in 2018, and FPB Financial Corp. in 2019, SWG in 2020, BBI in 2022, and HSBI in 2023, the Company assumed federal tax net operating loss carryovers. $205.1 million of net operating losses remain available to the Company and begin to expire in 2026. The Company expects to fully utilize the net operating losses.
The Company follows the guidance of ASC Topic 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of December 31, 2024, the Company had no uncertain tax
positions that it believes should be recognized in the financial statements. The tax years still subject to examination by taxing authorities are years subsequent to 2020.