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Income Taxes
 12 Months Ended
Dec. 31, 2023
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:202320222021
Current$(7,181)$1,378 $17,022 
Deferred27,458 18,634 6,077 
State income taxes:
Current1,590 40 584 
Deferred256 (325)202 
Income tax expense$22,123 $19,727 $23,885 
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is below:
Years Ended December 31,
202320222021
(Dollars in thousands)Amount%Amount%Amount%
Income taxes computed at statutory rate$22,244 21.00 %$22,563 21.00 %$27,811 21.00 %
Tax exempt revenue, net of nondeductible interest(1,072)(1.01)(1,510)(1.41)(1,339)(1.01)
Low-income housing tax credits, net of amortization(758)(0.72)(832)(0.77)(468)(0.35)
Other tax credits, net of add-backs(1,218)(1.15)(1,218)(1.13)(1,218)(0.92)
Bank-owned life insurance income(182)(0.17)(145)(0.13)(170)(0.13)
State income taxes, net of federal benefit1,498 1.41 (201)(0.19)662 0.50 
Stock-based compensation632 0.60 17 0.02 (1,272)(0.96)
Nondeductible expense814 0.77 996 0.93 106 0.08 
Other165 0.16 57 0.04 (227)(0.17)
Total income tax expense$22,123 20.89 %$19,727 18.36 %$23,885 18.04 %
Significant components of deferred tax assets and liabilities are as follows:
(Dollars in thousands)December 31,
Deferred tax assets:20232022
Credit loss allowances$22,019 $20,480 
Deferred compensation and share-based compensation7,442 7,699 
Net operating loss carryforwards1,333 27,341 
Credit carryforwards— 3,678 
Other5 45 
Investments in limited partnerships1,789 13 
Other real estate owned 24 9 
Lease obligations48 36 
Premium/discount on acquisitions187 624 
Deferred rent obligations427 594 
Gross deferred tax assets33,274 60,519 
Valuation allowance(1,193)(899)
Deferred tax assets net of valuation allowance$32,081 $59,620 
Deferred tax liabilities:
Basis difference in premises and equipment$4,586 $3,811 
Intangible assets6,858 8,539 
Mortgage servicing rights3,378 4,499 
Deferred Income2,181 — 
Other361 341 
Gross deferred tax liabilities17,364 17,190 
Net deferred tax asset$14,717 $42,430 
At December 31, 2023, the Company had $2.3 million of Federal gross net operating net loss carryforwards and $29.0 million in gross state net operating losses carryforwards. Of these net loss carryforwards, $2.3 million in Federal gross net operating loss carryforwards acquired in previous business combinations are expiring between 2024 and 2028, and 96.2% of the $29.0 million in state net operating losses can be carried forward indefinitely with the remaining carryforwards expiring between 2024 and 2042. 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 $1,193,000 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 2020.