XML 41 R24.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
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:202420232022
Current$19,920 $(7,181)$1,378 
Deferred(1,425)27,458 18,634 
State income taxes:
Current2,314 1,590 40 
Deferred(42)256 (325)
Income tax expense$20,767 $22,123 $19,727 
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is below:
Years Ended December 31,
202420232022
(Dollars in thousands)Amount%Amount%Amount%
Income taxes computed at statutory rate$20,424 21.00 %$22,244 21.00 %$22,563 21.00 %
Tax exempt revenue, net of nondeductible interest(772)(0.79)(1,072)(1.01)(1,510)(1.41)
Low-income housing tax credits, net of amortization(539)(0.55)(758)(0.72)(832)(0.77)
Other tax credits, net of add-backs(1,063)(1.09)(1,218)(1.15)(1,218)(1.13)
Bank-owned life insurance income(196)(0.20)(182)(0.17)(145)(0.13)
State income taxes, net of federal benefit1,791 1.84 1,498 1.41 (201)(0.19)
Stock-based compensation525 0.54 632 0.60 17 0.02 
Nondeductible expense834 0.86 814 0.77 996 0.93 
Other(237)(0.26)165 0.16 57 0.04 
Total income tax expense$20,767 21.35 %$22,123 20.89 %$19,727 18.36 %
Significant components of deferred tax assets and liabilities are as follows:
(Dollars in thousands)December 31,
Deferred tax assets:20242023
Credit loss allowances$20,458 $22,019 
Deferred compensation and share-based compensation8,244 7,442 
Net operating loss carryforwards1,699 1,333 
Other1 5 
Self-funded insurance119 — 
Litigation reserve854 — 
Investments in limited partnerships1,307 1,789 
Other real estate owned 137 24 
Lease obligations48 48 
Premium/discount on acquisitions187 187 
Deferred rent obligations819 427 
Gross deferred tax assets33,873 33,274 
Valuation allowance(1,587)(1,193)
Deferred tax assets net of valuation allowance$32,286 $32,081 
Deferred tax liabilities:
Basis difference in premises and equipment$6,864 $4,586 
Intangible assets5,597 6,858 
Mortgage servicing rights— 3,378 
Deferred Income3,302 2,181 
Other339 361 
Gross deferred tax liabilities16,102 17,364 
Net deferred tax asset$16,184 $14,717 
At December 31, 2024, the Company had $2.1 million of Federal gross net operating net loss carryforwards and $28.5 million in gross state net operating losses carryforwards. Of these net loss carryforwards, $2.1 million in Federal gross net operating loss carryforwards acquired in previous business combinations are expiring between 2025 and 2028, and 97.9% of the $28.5 million in state net operating losses can be carried forward indefinitely with the remaining carryforwards expiring between 2040 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 $1.6 million 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 2021.