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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
Note 15 - Income Taxes
The provision for income taxes is as follows:
(Dollars in thousands)Years Ended December 31,
Federal income taxes:202120202019
Current$17,022 $18,157 $14,232 
Deferred6,077 (11,545)(2,513)
State income taxes:
Current584 1,723 1,030 
Deferred202 (339)(83)
Income tax expense$23,885 $7,996 $12,666 
A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is below:
Years Ended December 31,
202120202019
(Dollars in thousands)Amount%Amount%Amount%
Income taxes computed at statutory rate$27,811 21.00 %$9,314 21.00 %$13,975 21.00 %
Tax exempt revenue, net of nondeductible interest(1,339)(1.01)(878)(1.98)(644)(0.97)
Low-income housing tax credits, net of amortization(468)(0.35)(511)(1.15)(514)(0.77)
Other tax credits, net of add-backs(1,218)(0.92)(1,218)(2.75)(1,218)(1.83)
Bank-owned life insurance income(170)(0.13)(259)(0.58)(158)(0.24)
State income taxes, net of federal benefit662 0.50 1,033 2.35 730 1.10 
Stock-based compensation(1,272)(0.96)181 0.41 (100)(0.15)
Nondeductible expense106 0.08 257 0.58 413 0.62 
Other(227)(0.17)77 0.16 182 0.27 
Total income tax expense$23,885 18.04 %$7,996 18.04 %$12,666 19.03 %
Significant components of deferred tax assets and liabilities are as follows:
(Dollars in thousands)December 31,
Deferred tax assets:20212020
Credit loss allowances$14,565 $19,315 
Deferred compensation and share-based compensation4,795 4,504 
Net operating loss carryforwards1,170 1,240 
Other278 1,064 
Gross deferred tax assets20,808 26,123 
Valuation allowance(974)(994)
Deferred tax assets net of valuation allowance$19,834 $25,129 
Deferred tax liabilities:
Basis difference in premises and equipment$2,461 $3,089 
Intangible assets127 118 
Mortgage servicing rights3,504 2,951 
Other1,144 146 
Gross deferred tax liabilities7,236 6,304 
Net deferred tax asset$12,598 $18,825 
At December 31, 2021, the Company has $3.4 million in Federal gross net operating loss carryforwards acquired in previous business combinations expiring between 2022 and 2028, and $15.0 million in state net operating losses expiring between 2022 and 2041. Due to limitations on the amounts of these losses that can be recognized annually, the Company has determined that it is more likely than not that some of these net operating loss carryforwards will expire unused, and has established a $974,000 valuation allowance related to these carryforwards.
The Company files a consolidated income tax return in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities in these taxing jurisdictions for the years before 2018.