INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

The components of income taxes for the years ended December 31, 2024, 2023 and 2022 were as follows:


(dollars in thousands)	2024		2023 (Restated)		2022 (Restated)
Federal:
Current	$	13,592	$	25,420	$	25,270
Deferred	(6,249)		(5,805)		(2,201)
State:
Current	(201)		9,296		11,986
Deferred	1,714		(2,104)		(3,906)
Total income tax expense	$	8,856	$	26,807	$	31,149

Schedule of Reconciliation of Income Tax Expense

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2024, 2023 and 2022 as follows:


(dollars in thousands)	2024		2023 (Restated)		2022 (Restated)
Expected income taxes	$	9,849	$	18,472	$	27,591
Less income tax effect of:
Tax-exempt income, net	(2,116)		(1,762)		(2,014)

State tax, net of federal benefit	1,192		5,666		6,372


Equity-based compensation benefit	(120)		(21)		(186)


Surrender of company-owned life insurance policies	—		3,756		—
Valuation allowance	44		69		58

Other	7		627		(672)
Actual income tax expense	$	8,856	$	26,807	$	31,149

Schedule of Deferred Tax Assets, Net

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2024 and 2023 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2024		2023 (Restated)
Assets:
Allowance for credit losses on loans	$	29,191	$	43,016
Deferred compensation	2,050		2,108
Loans	877		1,069

Tax credits	8,796		580

Unrealized loss on securities	28,547		26,022
Unrealized loss on derivatives	504		2,280

Net operating losses	7,290		8,090






Operating lease liabilities	2,654		2,521
Other, net	6,644		2,826
Deferred tax assets	86,553		88,512
Valuation allowance	(287)		(244)
Deferred tax assets, net of valuation allowance	86,266		88,268
Liabilities:
Premises and equipment	1,177		786


Mortgage servicing rights	3,524		3,870
Fair value adjustment on trust preferred debentures	3,593		3,853

Deferred loan costs, net of fees	1,457		2,410
Intangible assets	2,783		3,577



Leased equipment	15,981		23,824
Operating lease right-of-use assets	2,318		2,072
Other, net	7,414		5,142
Deferred tax liabilities	38,247		45,534
Deferred tax assets, net	$	48,019	$	42,734