Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Current income tax provision:
Federal	$	61,962	$	59,333	$	32,129
State	32,754		32,794		22,743
Total current income tax provision	94,716		92,127		54,872
Deferred income tax provision (benefit):
Federal	3,705		18,753		(26,554)

State	2,194		10,054		(16,068)
Total deferred income tax provision (benefit)	5,899		28,807		(42,622)
Total income tax provision	$	100,615	$	120,934	$	12,250

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 2022, 2021, and 2020, to the Company’s total effective income tax provisions for the years ended December 31 is as follows:


(Dollars in thousands)	2022		2021		2020
Statutory federal income tax provision	$	80,715	$	96,773	$	15,246
State taxes, net of federal income tax effect	27,986		34,001		4,757
Cash surrender life insurance	(2,238)		(1,890)		(1,163)
Tax-exempt interest	(5,215)		(6,803)		(4,073)
Non-deductible merger costs	—		—		703
LIHTC investments	(2,441)		(2,716)		(2,259)

Stock-based compensation shortfall (windfall)	(1,954)		(1,356)		407
Effect of the CARES Act	—		—		(2,636)
Section 162(m) of the Internal Revenue Code	2,956		2,015		968
Other	806		910		300
Total income tax provision	$	100,615	$	120,934	$	12,250

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)	2022		2021
Deferred tax assets:
Accrued expenses	$	4,022	$	3,681
Net operating loss	4,803		5,681
Allowance for credit losses, net of bad debt charge-offs	62,582		64,628
Deferred compensation	3,127		3,338
State taxes	6,965		6,834

Loan net discounts	15,566		21,980
Stock-based compensation	4,327		4,030
Operating lease liabilities	16,522		20,708
Unrealized loss on available-for-sale securities	105,313		3,156
Federal and state credit carryovers	157		2,242
Other	1,486		—
Total deferred tax assets	224,870		136,278
Deferred tax liabilities:
Operating lease right-of-use assets	$	(14,378)	$	(18,272)
Deferred FDIC gain	(64)		(69)
Core deposit intangibles	(14,017)		(17,676)
Loan origination costs	(8,567)		(7,547)
Depreciation	(4,242)		(4,897)

Other	—		(473)
Total deferred tax liabilities	(41,268)		(48,934)
Valuation allowance	—		—
Net deferred tax assets	$	183,602	$	87,344

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)	2022		2021
Balance at January 1,	$	1,437	$	255
Increases based on tax positions related to prior years	—		1,437
Decreases related to settlements with taxing authorities	—		(233)
Decreases related to lapse of statute of limitation	—		(22)
Balance at December 31,	$	1,437	$	1,437