| Summary of Provision (Benefit) for Income Taxes |
A summary of the provision for income taxes was as follows:
|
|
|
Year Ended December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
(in thousands)
|
|
|
Current expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
10,565
|
|
|
$
|
18,737
|
|
|
$
|
13,415
|
|
|
State
|
|
|
6,310
|
|
|
|
9,377
|
|
|
|
5,293
|
|
|
Total current expense
|
|
|
16,875
|
|
|
|
28,114
|
|
|
|
18,708
|
|
|
Deferred expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
663
|
|
|
|
(10,515
|
)
|
|
|
3,428
|
|
|
State
|
|
|
(239
|
)
|
|
|
(3,039
|
)
|
|
|
3,966
|
|
|
Total deferred expense
|
|
|
424
|
|
|
|
(13,554
|
)
|
|
|
7,394
|
|
|
Income tax expense
|
|
$
|
17,299
|
|
|
$
|
14,560
|
|
|
$
|
26,102
|
|
|
| Summary of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities were as follows:
|
|
|
Year Ended December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
(in thousands)
|
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
$
|
26,883
|
|
|
$
|
18,401
|
|
|
$
|
10,035
|
|
|
Purchase accounting
|
|
|
3,902
|
|
|
|
3,912
|
|
|
|
2,724
|
|
|
Net operating loss carryforward
|
|
|
15,342
|
|
|
|
15,453
|
|
|
|
17,609
|
|
|
Unrealized loss on securities available for sale
|
|
|
—
|
|
|
|
—
|
|
|
|
2,457
|
|
|
Mark to market
|
|
|
—
|
|
|
|
261
|
|
|
|
—
|
|
|
Lease liability
|
|
|
15,562
|
|
|
|
10,716
|
|
|
|
—
|
|
|
Tax credits
|
|
|
—
|
|
|
|
198
|
|
|
|
561
|
|
|
State taxes
|
|
|
1,223
|
|
|
|
1,739
|
|
|
|
1,138
|
|
|
Other
|
|
|
3,669
|
|
|
|
3,766
|
|
|
|
2,955
|
|
|
Total deferred tax assets
|
|
|
66,581
|
|
|
|
54,446
|
|
|
|
37,479
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to market
|
|
|
(1,660
|
)
|
|
|
—
|
|
|
|
(4,719
|
)
|
|
Depreciation
|
|
|
(631
|
)
|
|
|
(388
|
)
|
|
|
(467
|
)
|
|
Unrealized gain loss on securities available for sale
|
|
|
(1,247
|
)
|
|
|
(1,370
|
)
|
|
|
—
|
|
|
Leases - right of use assets
|
|
|
(15,044
|
)
|
|
|
(10,517
|
)
|
|
|
—
|
|
|
Other
|
|
|
(2,228
|
)
|
|
|
(532
|
)
|
|
|
—
|
|
|
Total deferred tax liabilities
|
|
|
(20,810
|
)
|
|
|
(12,807
|
)
|
|
|
(5,186
|
)
|
|
Valuation allowance
|
|
|
(4,352
|
)
|
|
|
(4,852
|
)
|
|
|
(4,852
|
)
|
|
Net deferred tax assets
|
|
$
|
41,418
|
|
|
$
|
36,787
|
|
|
$
|
27,441
|
|
|
| Reconciliation between Federal Statutory Income Tax Rate and Effective Tax Rates |
Reconciliation between the federal statutory income tax rate and the effective tax rates is shown in the following table:
|
|
|
Year Ended December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
Federal statutory income tax rate
|
|
|
21.00
|
%
|
|
|
21.00
|
%
|
|
|
21.00
|
%
|
|
State taxes, net of federal tax benefits
|
|
|
7.86
|
%
|
|
|
9.39
|
%
|
|
|
9.50
|
%
|
|
Tax credit - federal
|
|
|
(2.68
|
)%
|
|
|
(3.49
|
)%
|
|
|
(2.37
|
)%
|
|
Federal rate adjustment, net of federal benefits of state
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
1.32
|
%
|
|
Low-income housing amortization
|
|
|
3.02
|
%
|
|
|
4.17
|
%
|
|
|
2.40
|
%
|
|
Other
|
|
|
(0.12
|
)%
|
|
|
(0.32
|
)%
|
|
|
(0.76
|
)%
|
|
Effective tax rate
|
|
|
29.08
|
%
|
|
|
30.75
|
%
|
|
|
31.09
|
%
|
|