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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income tax is summarized as follows for the years ended December 31,:
202220212020
Current$5,637 $5,533 $12,957 
Deferred9,203 3,145 (3,377)
Total income tax expense$14,840 $8,678 $9,580 
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory U.S. federal income tax rates to income before provision for income taxes is as follows for the years ended December 31,:
202220212020
Income tax provision computed at U.S. federal statutory rate$15,545 $10,887 $12,005 
State tax expense, net of U.S. federal effect2,359 1,836 1,536 
Tax exempt interest(4,011)(4,562)(4,381)
Net increase in cash surrender value of BOLI(353)(268)(269)
Non-deductible professional fees216 648 — 
Executive compensation727 — — 
Other357 137 689 
Income tax provision$14,840 $8,678 $9,580 
Effective tax provision rate20.0%16.7%16.8%
Significant components of deferred tax assets and liabilities are as follows as of December 31,:
20222021
Deferred tax assets:
 Federal and state net operating loss $25,118 $16,266 
 Allowance for loan losses 15,537 11,207 
 Unrealized loss on securities 14,235 — 
 Deferred compensation 4,756 4,720 
 Fair value adjustments on loans 2,428 35 
 Share-based compensation 2,208 2,235 
 Accrued expenses 1,320 1,039 
 Deferred loan fees 1,044 2,059 
 Lease liability 1,044 — 
 Fair value adjustments on deposits 326 — 
 Other real estate owned and foreclosed assets 7 40 
 State tax credits — 48 
 Other 4,559 2,120 
Total deferred tax assets72,582 39,769 
Deferred tax liabilities:
Mortgage servicing rights17,465 11,170 
Fair value adjustments on intangible assets3,596 1,731 
Prepaid expenses1,143 1,078 
Premises and equipment918 1,018 
Fair value adjustments on debt700 1,029 
FHLB stock196 165 
Unrealized gain on securities— 541 
Other209 7 
Total deferred tax liabilities24,227 16,739 
Total deferred tax assets, net$48,355 $23,030 
As of December 31, 2022, we had net operating loss carryforwards for U.S. federal income tax purposes of approximately $118,712 which begin to expire in 2033. As of December 31, 2022, we had net operating loss carryforwards for state tax purposes of approximately $3,713 which begin to expire in 2026. Utilization of a portion of the net operating losses may be subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382 and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. We believe that all of the net operating loss carryforwards will be used prior to expiration.
We evaluate uncertain tax positions at the end of each reporting period. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2022 and 2021, we concluded there were no material uncertain tax positions.