Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
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,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Unrecognized tax benefits at beginning of year

 

$

258

 

 

$

 

 

$

73

 

Gross decreases for tax positions of prior years

 

 

 

 

 

 

 

 

(73

)

Gross increase for new tax positions

 

 

 

 

 

258

 

 

 

 

Unrecognized tax benefits at end of year

 

$

258

 

 

$

258

 

 

$

 

Summary of Provision for Income Taxes

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

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Current expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

1,310

 

 

$

21,805

 

 

$

10,565

 

State

 

 

304

 

 

 

10,901

 

 

 

6,310

 

Total current expense

 

 

1,614

 

 

 

32,706

 

 

 

16,875

 

Deferred expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

27,674

 

 

 

4,914

 

 

 

663

 

State

 

 

10,045

 

 

 

(803

)

 

 

(239

)

Total deferred expense

 

 

37,719

 

 

 

4,111

 

 

 

424

 

Income tax expense

 

$

39,333

 

 

$

36,817

 

 

$

17,299

 

Summary of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

$

21,626

 

 

$

21,671

 

 

$

26,883

 

Purchase accounting

 

 

2,149

 

 

 

3,360

 

 

 

3,902

 

Net operating loss carryforward

 

 

14,590

 

 

 

15,316

 

 

 

15,342

 

Unrealized loss on securities available for sale

 

 

35,973

 

 

 

3,421

 

 

 

 

Lease liability

 

 

13,029

 

 

 

14,712

 

 

 

15,562

 

Tax credits

 

 

1,711

 

 

 

 

 

 

 

State taxes

 

 

54

 

 

 

2,318

 

 

 

1,223

 

Other

 

 

3,793

 

 

 

4,032

 

 

 

3,669

 

Total deferred tax assets

 

 

92,925

 

 

 

64,830

 

 

 

66,581

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

 

Mark to market

 

 

(38,916

)

 

 

(3,531

)

 

 

(1,660

)

Depreciation

 

 

(1,292

)

 

 

(1,292

)

 

 

(631

)

Unrealized gain on securities available for sale

 

 

 

 

 

 

 

 

(1,247

)

Leases - right of use assets

 

 

(11,932

)

 

 

(13,738

)

 

 

(15,044

)

Other

 

 

(2,836

)

 

 

(2,650

)

 

 

(2,228

)

Total deferred tax liabilities

 

 

(54,976

)

 

 

(21,211

)

 

 

(20,810

)

Valuation allowance

 

 

(1,276

)

 

 

(1,644

)

 

 

(4,352

)

Net deferred tax assets

 

$

36,673

 

 

$

41,975

 

 

$

41,418

 

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,

 

 

 

2022

 

 

2021

 

 

2020

 

Federal statutory income tax rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State taxes, net of federal tax benefits

 

 

7.33

 

 

 

5.81

 

 

 

7.86

 

Tax credit - federal

 

 

(1.30

)

 

 

(1.16

)

 

 

(2.68

)

Low-income housing amortization

 

 

1.34

 

 

 

1.37

 

 

 

3.02

 

Other

 

 

(0.42

)

 

 

0.16

 

 

 

(0.12

)

Effective tax rate

 

 

27.95

%

 

 

27.18

%

 

 

29.08

%