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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Allocation of income tax expense between current and deferred portions is as follows:
Year Ended December 31,
(dollars in thousands)202320222021
Current
Federal$12,538 $15,194 $11,330 
State6,384 7,459 6,053 
Total current18,922 22,653 17,383 
.
Deferred
Federal2,811 (2,045)1,945 
State1,006 (874)963 
Total deferred3,817 (2,919)2,908 
Income tax expense$22,739 $19,734 $20,291 
Income tax expense differs from the statutory federal rate due to the following:
Year Ended December 31,
202320222021
(dollars in thousands)AmountPercentageAmountPercentageAmountPercentage
Federal income tax, at statutory rate$18,602 21.0 %$16,000 21.0 %$16,078 21.0 %
Increase (decrease) resulting from:
Federally tax exempt interest income(1,767)(2.0)(1,618)(2.1)(1,426)(1.9)
State taxes, net of federal benefit5,838 6.6 5,285 6.9 5,430 7.1 
Other66 0.1 67 0.1 209 0.3 
Income tax expense$22,739 25.7 %$19,734 25.9 %$20,291 26.5 %
The components of the deferred tax assets and liabilities are as follows:
(dollars in thousands)December 31, 2023December 31, 2022
Deferred tax assets
Allowance for credit losses$12,247 $7,151 
Compensation related3,230 2,623 
Deferred loan fees676 965 
Nonaccrual interest596 480 
Foreclosed assets18 142 
Goodwill74 153 
Net operating loss carryforward144 — 
Net unrealized losses on debt securities23,967 29,874 
Other purchase accounting adjustments5,250 — 
Other575 5,237 
Total deferred tax assets46,777 46,625 
Deferred tax liabilities
Fixed asset depreciation3,044 3,940 
Mortgage servicing rights5,306 2,868 
Other purchase accounting adjustments— 610 
Intangible assets5,584 214 
Prepaid assets816 756 
Other566 2,756 
Total deferred tax liabilities15,316 11,144 
Net deferred tax asset$31,461 $35,481 
As of December 31, 2023, the Company had an Illinois net operating loss carryforward of $1.9 million which is available to offset future Illinois taxable income. The Illinois net operating loss carryforward is subject to a $100 thousand limitation through 2023 and will begin to expire in 2044. Management believes that it is more likely than not that the deferred tax assets included in the balance sheet will be realized, and that a valuation allowance was not required for deferred tax assets as of December 31, 2023 and 2022.
The Company files consolidated federal and state income tax returns. The Company is generally no longer subject to federal or state income tax examinations for years prior to 2020.