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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes (In Thousands) Significant components of the provision for income taxes are as follows for the periods presented:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal | $ | 39,507 |  |  | $ | 34,629 |  |  | $ | 30,193 |
State | 3,453 |  |  | 895 |  |  | 3,309 |
| 42,960 |  |  | 35,524 |  |  | 33,502 |
Deferred |  |  |  |  |
Federal | 1,630 |  |  | 9,168 |  |  | (10,947) |
State | 650 |  |  | 2,243 |  |  | (2,715) |
| 2,280 |  |  | 11,411 |  |  | (13,662) |
| $ | 45,240 |  |  | $ | 46,935 |  |  | $ | 19,840 |
The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Tax at U.S. statutory rate | $ | 44,375 |  |  | $ | 46,794 |  |  | $ | 21,733 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
Tax-exempt interest income | (1,832) |  |  | (1,669) |  |  | (1,431) |
BOLI income | (1,946) |  |  | (1,547) |  |  | (1,182) |
Investment tax credits | (928) |  |  | (988) |  |  | (1,494) |
Amortization of investment in low-income housing tax credits | 683 |  |  | 817 |  |  | 1,280 |
State income tax expense, net of federal benefit | 3,241 |  |  | 2,479 |  |  | 469 |
Other items, net | 1,647 |  |  | 1,049 |  |  | 465 |
| $ | 45,240 |  |  | $ | 46,935 |  |  | $ | 19,840 |
Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:
| December 31,
| 2022 |  | 2021
Deferred tax assets |  |  |
Allowance for credit losses | $ | 52,551 |  |  | $ | 50,712 |
Loans | 2,518 |  |  | 2,855 |
Deferred compensation | 14,447 |  |  | 14,522 |
Net unrealized losses on securities | 70,999 |  |  | 3,545 |
Impairment of assets | 316 |  |  | 392 |
Net operating loss carryforwards | 497 |  |  | 1,211 |
Investments in partnerships | 1,164 |  |  | 890 |
Lease liabilities under operating leases | 14,641 |  |  | 17,106 |
Other | 3,523 |  |  | 3,241 |
Total deferred tax assets | 160,656 |  |  | 94,474 |
Deferred tax liabilities |  |  |
Fixed assets | 10,342 |  |  | 5,339 |
Mortgage servicing rights | 19,624 |  |  | 20,779 |
Junior subordinated debt | 1,948 |  |  | 2,130 |
Intangibles | 2,702 |  |  | 3,177 |
Lease right-of-use asset | 14,018 |  |  | 16,209 |
Other | 1,614 |  |  | 1,607 |
Total deferred tax liabilities | 50,248 |  |  | 49,241 |
Net deferred tax assets | $ | 110,408 |  |  | $ | 45,233 |
The effective tax rate was 21.78% and 22.41% for the year ended December 31, 2022 and 2021, respectively. The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2020 through 2022. The Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2020 through 2022. The Company acquired federal and state net operating losses as part of its previous acquisitions, with varying expiration periods. The federal and state net operating losses acquired in the Brand acquisition were $81,288 and $55,067, respectively, all created in 2018. As part of the 2017 Tax Cuts and Jobs Act and corresponding state tax laws, the federal net operating losses and the majority of the state net operating losses created by Brand during 2018 have an indefinite carryforward period. The federal net operating loss related to the Brand acquisition was fully utilized during 2021, while at December 31, 2022, there were state net operating losses without expiration periods of $5,388. The federal and state net operating losses acquired in the Heritage Financial Group, Inc. acquisition were $18,321 and $16,849, respectively, of which $1,101 and $278 remain to be utilized as of December 31, 2022. These losses begin to expire in 2029 and are expected to be fully utilized. Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the year ended December 31, 2022. The table below presents the breakout of net operating losses as of the dates presented.
| December 31,
| 2022 |  | 2021
Net Operating Losses |  |  |
Federal | $ | 1,101 |  |  | $ | 2,065 |
State | 5,666 |  |  | 16,954 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below:
| 2022 |  | 2021 |  | 2020
Balance at January 1 | $ | 408 |  |  | $ | 402 |  |  | $ | 667 |
Additions based on positions related to current period | 65 |  |  | 62 |  |  | 101 |
Reductions based on positions related to prior period | — |  |  | — |  |  | (314) |
Reductions due to lapse of statute of limitations | (66) |  |  | (56) |  |  | (52) |
Balance at December 31 | $ | 407 |  |  | $ | 408 |  |  | $ | 402 |
If ultimately recognized, the Company does not anticipate any material increase in the effective tax rate for 2022 relative to any tax positions taken prior to January 1, 2022. The Company had accrued $17, $15 and $18 for interest and penalties related to unrecognized tax benefits as of December 31, 2022, 2021 and 2020, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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