XML 45 R23.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12 - Income Taxes The provision for income taxes is as follows:
|  |  | For the Year Ended December 31,
(In thousands) |  |  | 2024 |  | 2023 |  | 2022
Current |  |  |  |  |  |  |
Federal |  |  | $ | 19,415 |  |  | $ | 14,716 |  |  | $ | 2,770 |
State |  |  | 5,887 |  |  | 6,061 |  |  | (1,266) |
Deferred |  |  |  |  |  |  |
Federal |  |  | 8,882 |  |  | 9,524 |  |  | 23,710 |
State |  |  | 670 |  |  | (82) |  |  | 6,415 |
|  |  | $ | 34,854 |  |  | $ | 30,219 |  |  | $ | 31,629 |
The difference between the total expected tax expense (computed by applying the U.S. Federal tax rate of 21% to pretax income) and the reported income tax provision relating to income before income taxes is as follows:
|  |  | For the Year Ended December 31,
(In thousands) |  |  | 2024 |  | 2023 |  | 2022
Tax rate applied to income before income taxes |  |  | $ | 32,727 |  |  | $ | 28,193 |  |  | $ | 29,009 |
Increase (decrease) resulting from the effects of: |  |  |  |  |  |  |
Nondeductible acquisition costs |  |  | — |  |  | 300 |  |  | 924 |
Tax exempt interest on loans and securities |  |  | (852) |  |  | (639) |  |  | (406) |
Income from bank owned life insurance |  |  | (2,108) |  |  | (2,217) |  |  | (935) |
State income taxes |  |  | (1,377) |  |  | (1,256) |  |  | (1,081) |
Tax credit investments |  |  | (641) |  |  | (402) |  |  | (406) |
Stock compensation |  |  | 66 |  |  | (446) |  |  | (992) |
Executive compensation disallowance |  |  | 111 |  |  | 638 |  |  | 402 |
Other |  |  | 371 |  |  | 69 |  |  | (36) |
Federal tax provision |  |  | 28,297 |  |  | 24,240 |  |  | 26,479 |
State tax provision |  |  | 6,557 |  |  | 5,979 |  |  | 5,150 |
Total income tax provision |  |  | $ | 34,854 |  |  | $ | 30,219 |  |  | $ | 31,629 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following is a summary of the significant components of the Company's deferred tax assets and liabilities as of:
|  |  | December 31,
(In thousands) |  |  | 2024 |  | 2023
Allowance for credit losses |  |  | $ | 38,093 |  |  | $ | 40,710 |
Other real estate owned |  |  | 220 |  |  | 91 |
Accrued stock compensation |  |  | 4,296 |  |  | 4,556 |
Federal tax loss carryforward |  |  | 2,364 |  |  | 2,660 |
State tax loss carryforward |  |  | 1,160 |  |  | 1,084 |
Lease liabilities |  |  | 11,334 |  |  | 12,811 |
Net unrealized securities losses |  |  | 49,446 |  |  | 50,817 |
Deferred compensation |  |  | 3,118 |  |  | 2,828 |
Accrued interest and fee income |  |  | 22,244 |  |  | 34,665 |
Other |  |  | 4,951 |  |  | 7,027 |
Gross deferred tax assets |  |  | 137,226 |  |  | 157,249 |
Less: Valuation allowance |  |  | — |  |  | — |
Deferred tax assets net of valuation allowance |  |  | 137,226 |  |  | 157,249 |
Core deposit intangible |  |  | (18,040) |  |  | (24,301) |
Net unrealized derivatives gains |  |  | 9 |  |  | (670) |
Premises and equipment |  |  | (841) |  |  | (1,771) |
Right-of-use assets |  |  | (10,375) |  |  | (11,854) |
Other |  |  | (4,990) |  |  | (5,421) |
Gross deferred tax liabilities |  |  | (34,237) |  |  | (44,017) |
Net deferred tax assets |  |  | $ | 102,989 |  |  | $ | 113,232 |
Included in the table above is the effect of temporary differences associated with the Company's investments in debt securities accounted for under ASC Topic 320, Investments - Debt Securities, for which no deferred tax expense or benefit was recognized. These items are recorded as Accumulated Other Comprehensive Income in the shareholders' equity section of the consolidated balance sheet. In 2024, net unrealized losses on debt securities of $207.3 million resulted in a deferred tax asset of $49.4 million. In 2023, unrealized losses of $212.7 million resulted in a deferred tax asset of $50.8 million. At December 31, 2024, the Company's net DTAs of $103.0 million consisted of $87.0 million of net U.S. federal DTAs and $20.7 million of net state DTAs. At December 31, 2023, the Company's net DTAs of $113.2 million consisted of $91.0 million of net U.S. federal DTAs and $22.2 million of net state DTAs. Management assesses the necessity of a valuation allowance recorded against DTAs at each reporting period. The determination of whether a valuation allowance for net DTAs is appropriate is subject to considerable judgment and requires an evaluation of positive and negative evidence. Based on an assessment of relevant evidence, including favorable trending in asset quality and certainty regarding the amount of future taxable income that the Company forecasts, management concluded that it was more likely than not that its net DTAs will be realized based upon future taxable income. Management's determination in the realization of projected future taxable income is based upon analysis of the Company's risk profile and its trending financial performance, including credit quality. The Company believes it can reasonably predict future results of operations that result in taxable income at sufficient levels over the future period of time that the Company has available to realize its net DTA. Management expects to realize the $103.0 million in net DTAs well in advance of the statutory carryforward period. At December 31, 2024, approximately $2.4 million of DTAs related to federal net operating losses which will expire in annual installments beginning in 2029 through 2032. Additionally, $1.2 million of the DTAs related to state net operating losses which will expire in annual installments beginning in 2029 through 2034. Remaining DTAs are not related to net operating losses or credits and therefore, have no expiration date. The Company recognizes interest and penalties, as appropriate, as part of the provisioning for income taxes. No interest or penalties were accrued at December 31, 2024. In accordance with ASC Topic 718, Compensation – Stock Compensation, the Company recognized net expense of $0.2 million and benefits of $0.5 million and $1.1 million in 2024, 2023, and 2022, respectively, of discrete tax benefits related to share-based compensation. In accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures, amortization of the Company's low-income housing credit investments of $3.2 million, $2.8 million and $2.5 million was reflected as income tax expense for the years ended December 31, 2024, 2023, and 2022, respectively. The amounts of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the year ended December 31, 2024 were $3.0 million, $3.2 million, and $0.8 million, respectively. The amounts of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the year ended December 31, 2023 were $2.7 million, $2.8 million and $1.5 million, respectively, and for the year ended December 31, 2022 were $2.0 million, $2.5 million and $1.0 million, respectively. The carrying value of the affordable housing credit investments was $36.3 million and $39.5 million at December 31, 2024 and 2023, respectively, of which $18.3 million and $26.3 million, respectively, was unfunded. The Company has no unrecognized income tax benefits or provisions due to uncertain income tax positions. No federal or state income tax return examinations are currently in process. The Company does not expect to record or realize any material unrecognized tax benefits during 2024. The following are the major tax jurisdictions in which the Company operates and the earliest tax year, exclusive of the impact of the net operating loss carryforwards, subject to examination:
Jurisdiction | Tax Year
United States of America | 2021
Florida | 2021

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration