| Summary of Provision for Income Taxes |
A summary of the provision for income taxes was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Current expense: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
18,139 |
|
|
$ |
26,336 |
|
|
$ |
1,310 |
|
State |
|
|
11,704 |
|
|
|
13,610 |
|
|
|
304 |
|
Total current expense |
|
|
29,843 |
|
|
|
39,946 |
|
|
|
1,614 |
|
Deferred expense (benefit): |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(2,009 |
) |
|
|
(4,980 |
) |
|
|
27,674 |
|
State |
|
|
(1,430 |
) |
|
|
(426 |
) |
|
|
10,045 |
|
Total deferred expense |
|
|
(3,439 |
) |
|
|
(5,406 |
) |
|
|
37,719 |
|
Income tax expense |
|
$ |
26,404 |
|
|
$ |
34,540 |
|
|
$ |
39,333 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
$ |
20,828 |
|
|
$ |
20,745 |
|
|
$ |
21,626 |
|
Purchase accounting |
|
|
1,977 |
|
|
|
1,467 |
|
|
|
2,149 |
|
Net operating loss carryforward |
|
|
13,459 |
|
|
|
13,712 |
|
|
|
14,590 |
|
Unrealized loss on securities available for sale |
|
|
28,638 |
|
|
|
29,120 |
|
|
|
35,973 |
|
Lease liability |
|
|
11,845 |
|
|
|
13,729 |
|
|
|
13,029 |
|
Tax credits |
|
|
— |
|
|
|
— |
|
|
|
1,711 |
|
State taxes |
|
|
2,520 |
|
|
|
2,741 |
|
|
|
54 |
|
Other |
|
|
4,548 |
|
|
|
4,283 |
|
|
|
3,793 |
|
Total deferred tax assets |
|
|
83,815 |
|
|
|
85,797 |
|
|
|
92,925 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
Mark to market |
|
|
(30,018 |
) |
|
|
(32,992 |
) |
|
|
(38,916 |
) |
Depreciation |
|
|
(885 |
) |
|
|
(333 |
) |
|
|
(1,292 |
) |
Leases - right of use assets |
|
|
(10,616 |
) |
|
|
(12,592 |
) |
|
|
(11,932 |
) |
Other |
|
|
(2,624 |
) |
|
|
(2,790 |
) |
|
|
(2,836 |
) |
Total deferred tax liabilities |
|
|
(44,143 |
) |
|
|
(48,707 |
) |
|
|
(54,976 |
) |
Valuation allowance |
|
|
(1,488 |
) |
|
|
(1,864 |
) |
|
|
(1,276 |
) |
Net deferred tax assets |
|
$ |
38,184 |
|
|
$ |
35,226 |
|
|
$ |
36,673 |
|
|