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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 18 – INCOME TAXES

The provision for income taxes (credit) consists of the following:

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

Current expense

 

$

9,230

 

 

$

10,885

 

 

$

10,794

 

Deferred expense (benefit)

 

 

(464

)

 

 

1,353

 

 

 

(524

)

Totals

 

$

8,766

 

 

$

12,238

 

 

$

10,270

 

Effective tax rates differ from the federal statutory rate of 21% that were applied to income before income taxes due to the following:

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

Statutory tax

 

$

12,327

 

 

$

15,295

 

 

$

13,026

 

Effect of nontaxable interest

 

 

(2,040

)

 

 

(2,591

)

 

 

(2,274

)

Bank owned life insurance, net

 

 

(513

)

 

 

(380

)

 

 

(273

)

Tax credit investments

 

 

(366

)

 

 

(194

)

 

 

(200

)

Effect of nontaxable insurance premiums

 

 

(404

)

 

 

(318

)

 

 

(322

)

Stock compensation

 

 

41

 

 

 

(63

)

 

 

(9

)

Other

 

 

(279

)

 

 

489

 

 

 

322

 

Actual tax

 

$

8,766

 

 

$

12,238

 

 

$

10,270

 

 

Deferred tax assets (liabilities) are comprised of the following:

 

 

 

 

2023

 

 

 

2022

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses

 

$

7,235

 

 

$

5,665

 

Net unrealized loss on securities available for sale

 

 

45,599

 

 

 

55,962

 

Net unrealized loss on swap derivative

 

 

269

 

 

 

0

 

Basis in investment securities

 

 

6,976

 

 

 

0

 

Purchase accounting adjustments

 

 

4,147

 

 

 

0

 

Deferred and accrued compensation

 

 

2,060

 

 

 

1,748

 

Deferred loan fees and costs

 

 

0

 

 

 

275

 

Nonaccrual loan interest income

 

 

659

 

 

 

648

 

Restricted stock

 

 

795

 

 

 

501

 

Lease liabilities

 

 

2,164

 

 

 

1,841

 

Other

 

 

198

 

 

 

0

 

Gross deferred tax assets

 

$

70,102

 

 

$

66,640

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

$

(1,701

)

 

$

(1,485

)

Federal Home Loan Bank dividends

 

 

0

 

 

 

(904

)

Purchase accounting adjustments

 

 

0

 

 

 

(1,862

)

Mortgage servicing rights

 

 

(725

)

 

 

(700

)

Prepaid expenses

 

 

(41

)

 

 

(365

)

Lease right of use asset

 

 

(2,116

)

 

 

(1,766

)

Other

 

 

0

 

 

 

(234

)

Gross deferred tax liabilities

 

 

(4,583

)

 

 

(7,316

)

Net deferred tax asset

 

$

65,519

 

 

$

59,324

 

No valuation allowance for deferred tax assets was recorded at December 31, 2023 and 2022.

At December 31, 2023 and December 31, 2022, the Company had no unrecognized tax benefits recorded. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months.

The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2020. The tax years 2020—2022 remain open to examination by the U.S. taxing authority.