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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Federal and state income tax expense consists of the following for the years ended December 31:

(dollars in thousands)202120202019
Current federal income tax expense$39,865 $40,201 $39,756 
Current state income tax expense15,348 12,059 14,153 
Total current tax expense55,213 52,260 53,909 
Deferred federal income tax expense (benefit)5,185 (5,212)78 
Deferred state income tax benefit585 (3,120)(139)
Total deferred tax benefit5,770 (8,332)(61)
Total income tax expense$60,983 $43,928 $53,848 
The Company had net deferred tax assets (deferred tax assets in excess of deferred tax liabilities) of $43.2 million and $38.6 million for the years ended at December 31, 2021 and 2020, respectively, which related primarily to our allowance for credit losses, and loan origination fees. Management believes it is more likely than not that all of the deferred tax assets will be realized with the exception of certain state net operating losses.

Temporary timing differences between the amounts reported in the Consolidated Financial Statements and the tax bases of assets and liabilities result in deferred taxes. The table below summarizes significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020:
(dollars in thousands)20212020
Deferred tax assets    
Allowance for credit losses$19,736 $28,118 
Deferred loan fees and costs6,559 8,104 
Leases9,283 7,183 
Stock-based compensation1,132 828 
Net operating loss7,623 6,896 
Unrealized loss on securities available-for-sale4,900 — 
Unrealized loss on interest rate swap derivatives— 132 
SERP5,631 2,495 
Premises and equipment1,328 879 
Other assets2,098 1,982 
Valuation allowances(6,724)(5,845)
Total deferred tax assets51,566 50,772 
Deferred tax liabilities
Unrealized net gain on securities available-for-sale— (5,519)
Excess servicing(402)(206)
Intangible assets— — 
Leases(7,990)(6,470)
Other liabilities— (6)
Total deferred tax liabilities(8,392)(12,201)
Net deferred income tax assets$43,174 $38,571 
The net operating loss carry forward acquired in conjunction with the Fidelity acquisition is subject to annual limits under Section 382 of the Internal Revenue Code of $718 thousand and expires in 2027. The Company has concluded, based on the weight of available positive and negative evidence, a portion of its state net operating loss deferred tax asset is not more likely than not to be realized and accordingly, a valuation allowance of $6.7 million and $5.8 million is carried as of December 31, 2021 and 2020, respectively.

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31 2021, 2020, and 2019 follows:
202120202019
Statutory federal income tax rate21.00 %21.00 %21.00 %
Increase (decrease) due to:
State income taxes5.45 %5.04 %5.49 %
Tax exempt interest and dividend income(0.91)%(0.75)%(0.69)%
Stock-based compensation expense0.44 %0.25 %1.15 %
Other(0.32)%(0.63)%0.46 %
Effective tax rate25.66 %24.91 %27.41 %
The Company remains subject to examination by taxing authorities for the years ending after December 31, 2017. Management has identified no uncertain tax positions at December 31, 2021.