Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of components of income tax expense

The following presents the components of income tax expense for the years ended December 31:


(Dollars in thousands)	2021		2020		2019
Current income tax provision:
Federal	$	59,333	$	32,129	$	34,124
State	32,794		22,743		16,415
Total current income tax provision	92,127		54,872		50,539
Deferred income tax provision (benefit):
Federal	18,753		(26,554)		4,645

State	10,054		(16,068)		2,851
Total deferred income tax provision (benefit)	28,807		(42,622)		7,496
Total income tax provision	$	120,934	$	12,250	$	58,035

Schedule of reconciliation from statutory federal income taxes to the Company's effective income taxes

A reconciliation from statutory federal income taxes, which are based on a statutory rate of 21% for 2021, 2020, and 2019, to the Company’s total effective income tax provisions for the years ended December 31 is as follows:


(Dollars in thousands)	2021		2020		2019
Statutory federal income tax provision	$	96,773	$	15,246	$	45,729
State taxes, net of federal income tax effect	34,001		4,757		15,764
Cash surrender life insurance	(1,890)		(1,163)		(565)
Tax-exempt interest	(6,803)		(4,073)		(1,503)
Non-deductible merger costs	—		703		—
LIHTC investments	(2,716)		(2,259)		(1,570)

Stock-based compensation shortfall (windfall)	(1,356)		407		(728)
Effect of the CARES Act	—		(2,636)		—
Section 162(m) of the Internal Revenue Code	2,015		968		530
Other	910		300		378
Total income tax provision	$	120,934	$	12,250	$	58,035

Schedule of deferred tax assets (liabilities) comprised of the temporary differences between the financial statement carrying amounts and the tax basis of assets

Deferred tax assets (liabilities) were comprised of the following temporary differences between the financial statement carrying amounts and the tax basis of assets at December 31:


(Dollars in thousands)	2021		2020
Deferred tax assets:
Accrued expenses	$	3,681	$	1,307
Net operating loss	5,681		6,614
Allowance for credit losses, net of bad debt charge-offs	64,628		85,700
Deferred compensation	3,338		3,489
State taxes	6,834		4,395

Loan net discounts	21,980		32,484
Stock-based compensation	4,030		4,618
Operating lease liabilities	20,708		24,463
Unrealized loss on available-for-sale securities	3,156		—
Federal and state credit carryovers	2,242		3,750
Other	—		1,782
Total deferred tax assets	136,278		168,602
Deferred tax liabilities:
Operating lease right-of-use assets	$	(18,272)	$	(21,756)
Deferred FDIC gain	(69)		(108)
Core deposit intangibles	(17,676)		(21,828)
Loan origination costs	(7,547)		(5,176)
Depreciation	(4,897)		(6,551)
Unrealized gain on available-for-sale securities	—		(24,127)
Other	(473)		—
Total deferred tax liabilities	(48,934)		(79,546)
Valuation allowance	—		—
Net deferred tax assets	$	87,344	$	89,056

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows:


(Dollars in thousands)	2021		2020
Balance at January 1,	$	255	$	2,906
Increases based on tax positions related to prior years	1,437		233
Decreases related to settlements with taxing authorities	(233)		—
Decreases related to lapse of statute of limitation	(22)		(2,884)
Balance at December 31,	$	1,437	$	255