Schedule of Components of Income Taxes |
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 | | | | | | | | | | | | | |
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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 | |
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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 | |
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