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Income Taxes | 12 Months Ended
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Dec. 31, 2022
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) |  | 2022 |  | 2021 |  | 2020
Current federal income tax expense |  | $ | 37,182 |  |  | $ | 39,865 |  |  | $ | 40,201 |
Current state income tax expense |  | 5,008 |  |  | 15,348 |  |  | 12,059 |
Total current tax expense |  | 42,190 |  |  | 55,213 |  |  | 52,260 |
Deferred federal income tax expense (benefit) |  | 3,532 |  |  | 5,185 |  |  | (5,212) |
Deferred state income tax benefit |  | 3,028 |  |  | 585 |  |  | (3,120) |
Total deferred tax expense (benefit) |  | 6,560 |  |  | 5,770 |  |  | (8,332) |
Total income tax expense |  | $ | 48,750 |  |  | $ | 60,983 |  |  | $ | 43,928 |
The Company had net deferred tax assets (deferred tax assets in excess of deferred tax liabilities) of $96.6 million and $43.2 million for the years ended at December 31, 2022 and 2021, respectively, which related primarily to our unrealized loss on securities, 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, 2022 and 2021:
(dollars in thousands) |  | 2022 |  | 2021
Deferred tax assets |  |  |  |
Allowance for credit losses |  | $ | 18,490 |  |  | $ | 19,736 |
Deferred loan fees and costs |  | 6,736 |  |  | 6,559 |
Leases |  | 7,195 |  |  | 9,283 |
Stock-based compensation |  | 1,796 |  |  | 1,132 |
Net operating loss |  | 7,736 |  |  | 7,623 |
Unrealized loss on securities available-for-sale |  | 50,442 |  |  | 4,987 |
Unrealized loss on securities held-to-maturity |  | 14,366 |  |  | — |
SERP |  | 2,495 |  |  | 5,631 |
Premises and equipment |  | (205) |  |  | 1,328 |
Other assets |  | 1,344 |  |  | 2,011 |
Valuation allowances |  | (7,008) |  |  | (6,724) |
Total deferred tax assets |  | 103,387 |  |  | 51,566 |
Deferred tax liabilities |  |  |  |
Excess servicing |  | (589) |  |  | (402) |
Leases |  | (6,034) |  |  | (7,990) |
Other liabilities |  | (197) |  |  | — |
Total deferred tax liabilities |  | (6,820) |  |  | (8,392) |
Net deferred income tax assets |  | $ | 96,567 |  |  | $ | 43,174 |
As of December 31, 2022. the Company has $3.6 million of federal net operating loss carryforward in conjunction with the Fidelity acquisition, that is subject to annual limits under Section 382 of the Internal Revenue Code 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 $7.0 million and $6.7 million is carried as of December 31, 2022 and 2021, respectively. A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31, 2022, 2021 and 2020 follows:
| 2022 |  | 2021 |  | 2020
Statutory federal income tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Increase (decrease) due to: |  |  |  |  |
State income taxes | 3.28 | % |  | 5.45 | % |  | 5.04 | %
Non-deductible fines and penalties | 2.54 | % |  | — | % |  | — | %
Tax-exempt interest and dividend income | (1.57) | % |  | (0.91) | % |  | (0.75) | %
Stock-based compensation expense | 0.19 | % |  | 0.44 | % |  | 0.25 | %
Other | 0.26 | % |  | (0.32) | % |  | (0.63) | %
Effective tax rate | 25.70 | % |  | 25.66 | % |  | 24.91 | %
The Company remains subject to examination by taxing authorities for the years ending after December 31, 2018. Management has identified no uncertain tax positions at December 31, 2022.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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