Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Unrecognized tax benefits at beginning of year

 

$

258

 

 

$

258

 

 

$

 

Gross increase for new tax positions

 

 

 

 

 

 

 

 

258

 

Unrecognized tax benefits at end of year

 

$

258

 

 

$

258

 

 

$

258

 

Summary of Provision for Income Taxes

A summary of the provision for income taxes was as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Current expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

26,336

 

 

$

1,310

 

 

$

21,805

 

State

 

 

13,610

 

 

 

304

 

 

 

10,901

 

Total current expense

 

 

39,946

 

 

 

1,614

 

 

 

32,706

 

Deferred expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

(4,980

)

 

 

27,674

 

 

 

4,914

 

State

 

 

(426

)

 

 

10,045

 

 

 

(803

)

Total deferred expense

 

 

(5,406

)

 

 

37,719

 

 

 

4,111

 

Income tax expense

 

$

34,540

 

 

$

39,333

 

 

$

36,817

 

Summary of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

$

20,745

 

 

$

21,626

 

 

$

21,671

 

Purchase accounting

 

 

1,467

 

 

 

2,149

 

 

 

3,360

 

Net operating loss carryforward

 

 

13,712

 

 

 

14,590

 

 

 

15,316

 

Unrealized loss on securities available for sale

 

 

29,120

 

 

 

35,973

 

 

 

3,421

 

Lease liability

 

 

13,729

 

 

 

13,029

 

 

 

14,712

 

Tax credits

 

 

 

 

 

1,711

 

 

 

 

State taxes

 

 

2,741

 

 

 

54

 

 

 

2,318

 

Other

 

 

4,283

 

 

 

3,793

 

 

 

4,032

 

Total deferred tax assets

 

 

85,797

 

 

 

92,925

 

 

 

64,830

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

 

Mark to market

 

 

(32,992

)

 

 

(38,916

)

 

 

(3,531

)

Depreciation

 

 

(333

)

 

 

(1,292

)

 

 

(1,292

)

Leases - right of use assets

 

 

(12,592

)

 

 

(11,932

)

 

 

(13,738

)

Other

 

 

(2,790

)

 

 

(2,836

)

 

 

(2,650

)

Total deferred tax liabilities

 

 

(48,707

)

 

 

(54,976

)

 

 

(21,211

)

Valuation allowance

 

 

(1,864

)

 

 

(1,276

)

 

 

(1,644

)

Net deferred tax assets

 

$

35,226

 

 

$

36,673

 

 

$

41,975

 

Reconciliation between Federal Statutory Income Tax Rate and Effective Tax Rate

Reconciliation between the federal statutory income tax rate and the effective tax rate is shown in the following table:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Federal statutory income tax rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State taxes, net of federal tax benefits

 

 

9.06

 

 

 

7.33

 

 

 

5.81

 

Tax credit - federal

 

 

(1.52

)

 

 

(1.30

)

 

 

(1.16

)

Low-income housing amortization

 

 

1.64

 

 

 

1.34

 

 

 

1.37

 

Other

 

 

(0.03

)

 

 

(0.42

)

 

 

0.16

 

Effective tax rate

 

 

30.15

%

 

 

27.95

%

 

 

27.18

%