Summary of Provision for Income Taxes |
A summary of the provision for income taxes was as follows:
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Year Ended December 31, |
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2022 |
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2021 |
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|
2020 |
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(in thousands) |
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Current expense: |
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Federal |
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$ |
1,310 |
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$ |
21,805 |
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$ |
10,565 |
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State |
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|
304 |
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|
|
10,901 |
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|
|
6,310 |
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Total current expense |
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|
1,614 |
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|
32,706 |
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|
|
16,875 |
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Deferred expense (benefit): |
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Federal |
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$ |
27,674 |
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|
|
4,914 |
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|
|
663 |
|
State |
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|
10,045 |
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|
(803 |
) |
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|
(239 |
) |
Total deferred expense |
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37,719 |
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|
|
4,111 |
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|
|
424 |
|
Income tax expense |
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$ |
39,333 |
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|
$ |
36,817 |
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|
$ |
17,299 |
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Summary of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities were as follows:
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Year Ended December 31, |
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2022 |
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2021 |
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2020 |
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(in thousands) |
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Deferred tax assets: |
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Provision for credit losses |
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$ |
21,626 |
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$ |
21,671 |
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$ |
26,883 |
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Purchase accounting |
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2,149 |
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|
3,360 |
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|
3,902 |
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Net operating loss carryforward |
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14,590 |
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|
15,316 |
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|
15,342 |
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Unrealized loss on securities available for sale |
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35,973 |
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|
3,421 |
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— |
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Lease liability |
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13,029 |
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|
14,712 |
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|
15,562 |
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Tax credits |
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|
1,711 |
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|
— |
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— |
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State taxes |
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54 |
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2,318 |
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|
1,223 |
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Other |
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3,793 |
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4,032 |
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|
3,669 |
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Total deferred tax assets |
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92,925 |
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|
64,830 |
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|
66,581 |
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Deferred tax liabilities: |
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Mark to market |
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(38,916 |
) |
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(3,531 |
) |
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(1,660 |
) |
Depreciation |
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(1,292 |
) |
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(1,292 |
) |
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(631 |
) |
Unrealized gain on securities available for sale |
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— |
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— |
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(1,247 |
) |
Leases - right of use assets |
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(11,932 |
) |
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(13,738 |
) |
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(15,044 |
) |
Other |
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(2,836 |
) |
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(2,650 |
) |
|
|
(2,228 |
) |
Total deferred tax liabilities |
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|
(54,976 |
) |
|
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(21,211 |
) |
|
|
(20,810 |
) |
Valuation allowance |
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(1,276 |
) |
|
|
(1,644 |
) |
|
|
(4,352 |
) |
Net deferred tax assets |
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$ |
36,673 |
|
|
$ |
41,975 |
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|
$ |
41,418 |
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