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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income tax expense (benefit) for the years ended December 31, 2023, 2022, and 2021 are as follows:
($ in thousands) |  | 2023 |  | 2022 |  | 2021
Current | - Federal |  | $ | 24,750 |  |  | 35,616 |  |  | 25,742 |
| - State |  | 3,857 |  |  | 4,477 |  |  | 3,733 |
Deferred | - Federal |  | (481) |  |  | (1,658) |  |  | (4,247) |
| - State |  | (301) |  |  | (152) |  |  | (553) |
Total |  | $ | 27,825 |  |  | 38,283 |  |  | 24,675 |
The following is a reconciliation of federal income tax expense at the statutory rate of 21% at December 31, 2023, December 31, 2022, and December 31, 2021, to the income tax provision reported in the financial statements.
($ in thousands) |  | 2023 |  | 2022 |  | 2021
Tax provision at statutory rate |  | $ | 27,711 |  |  | 38,896 |  |  | 25,266 |
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |
Tax-exempt interest income |  | (2,175) |  |  | (1,976) |  |  | (1,589) |
Low income housing and other tax credits |  | (630) |  |  | (669) |  |  | (1,229) |
Bank-owned life insurance income |  | (920) |  |  | (1,511) |  |  | (589) |
Non-deductible interest expense |  | 241 |  |  | 26 |  |  | 14 |
State income taxes, net of federal benefit |  | 2,809 |  |  | 3,369 |  |  | 2,472 |
Nondeductible merger expenses |  | 489 |  |  | 107 |  |  | 242 |
Change in valuation allowance |  | (13) |  |  | (20) |  |  | (10) |
Nondeductible compensation |  | 274 |  |  | 97 |  |  | 27 |
Other, net |  | 39 |  |  | (36) |  |  | 71 |
Total |  | $ | 27,825 |  |  | 38,283 |  |  | 24,675 |
The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets, which are included in Other Assets on the consolidated balance sheets are as follows at December 31, 2023 and 2022:
($ in thousands) |  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Allowance for credit losses on loans |  | $ | 25,431 |  |  | 20,900 |
Allowance for credit losses on unfunded commitments |  | 2,632 |  |  | 3,057 |
Excess book over tax pension plan cost |  | 403 |  |  | 365 |
Deferred compensation |  | 1,453 |  |  | 638 |
Federal & state net operating loss and tax credit carryforwards |  | 188 |  |  | 197 |
Accruals, book versus tax |  | 3,462 |  |  | 4,404 |
Pension |  | 23 |  |  | — |
Unrealized losses on securities available for sale |  | 92,767 |  |  | 102,046 |
Foreclosed real estate |  | — |  |  | 3 |
Basis differences in assets acquired in FDIC transactions |  | 46 |  |  | — |
Purchase accounting adjustments |  | 4,691 |  |  | 2,982 |
Equity compensation |  | 1,524 |  |  | 768 |
Partnership investments |  | 773 |  |  | 652 |
Leases |  | 178 |  |  | 151 |
SBA servicing asset |  | 31 |  |  | 77 |
Gross deferred tax assets |  | 133,602 |  |  | 136,240 |
Less: Valuation allowance |  | (17) |  |  | (30) |
Net deferred tax assets |  | 133,585 |  |  | 136,210 |
Deferred tax liabilities: |  |  |  |
Loan fees |  | (2,952) |  |  | (3,102) |
Depreciable basis of fixed assets |  | (7,070) |  |  | (5,493) |
Amortizable basis of intangible assets |  | (15,523) |  |  | (10,047) |
Basis differences in assets acquired in FDIC transactions |  | — |  |  | (108) |
Trust preferred securities |  | (388) |  |  | (416) |
Pension |  | — |  |  | (12) |
Gross deferred tax liabilities |  | (25,933) |  |  | (19,178) |
Net deferred tax asset |  | $ | 107,652 |  |  | 117,032 |
The valuation allowances for 2023 and 2022 related to state net operating loss carryforwards. The realization of the remaining net deferred tax assets is determined to be more likely than not. The Company had no significant uncertain tax positions, and thus no reserve for uncertain tax positions has been recorded. Additionally, the Company determined that it has no material unrecognized tax benefits that if recognized would affect the effective tax rate. The Company’s general policy is to record tax penalties and interest as a component of “other operating expenses.” The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The Company’s tax returns are subject to income tax audit by federal and state agencies beginning with the year 2020. There are no indications of any material adjustments relating to any examination currently being conducted by any taxing authority. Retained earnings at December 31, 2023 and 2022 included approximately $6.9 million representing pre-1988 tax bad debt reserve base year amounts for which no deferred income tax liability has been provided since these reserves are not expected to reverse or may never reverse. Circumstances that would require an accrual of a portion or all of this unrecorded tax liability are a reduction in qualifying loan levels relative to the end of 1987, failure to meet the definition of a bank, dividend payments in excess of accumulated tax earnings and profits, or other distributions in dissolution, liquidation or redemption of the Bank’s stock.

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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 -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 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: 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 5: 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 6: 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//1943274/2147482526/740-270-50-1 Reference 7: 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 8: 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 9: 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 10: 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
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