Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Current income tax provision (benefit):
Federal	$	(2,231)	$	61,962	$	59,333
State	1,458		32,754		32,794
Total current income tax provision (benefit)	(773)		94,716		92,127
Deferred income tax provision:
Federal	3,127		3,705		18,753

State	835		2,194		10,054
Total deferred income tax provision	3,962		5,899		28,807
Total income tax provision	$	3,189	$	100,615	$	120,934

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 2023, 2022, and 2021, to the Company’s total effective income tax provisions for the years ended December 31 is as follows:


(Dollars in thousands)	2023		2022		2021
Statutory federal income tax provision	$	7,149	$	80,715	$	96,773
State taxes, net of federal income tax effect	1,132		27,986		34,001
Cash surrender life insurance	(2,402)		(2,238)		(1,890)
Tax-exempt interest	(3,084)		(5,215)		(6,803)

LIHTC investments	(2,653)		(2,441)		(2,716)

Stock-based compensation windfall	(49)		(1,954)		(1,356)

Section 162(m) of the Internal Revenue Code	1,825		2,956		2,015
Nondeductible meals and parking	736		588		624
Other	535		218		286
Total income tax provision	$	3,189	$	100,615	$	120,934

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)	2023		2022
Deferred tax assets:
Accrued expenses	$	5,013	$	4,022
Net operating loss	7,885		4,803
Allowance for credit losses, net of bad debt charge-offs	60,007		62,582
Deferred compensation	2,940		3,127
State taxes	332		6,965

Loan net discounts	12,240		15,566
Stock-based compensation	4,444		4,327
Operating lease liabilities	13,313		16,522
Unrealized loss on AFS investment securities	39,253		105,313
Federal and state credit carryovers	157		157
Other	740		1,422
Total deferred tax assets	146,324		224,806
Deferred tax liabilities:
Operating lease right-of-use assets	(11,742)		(14,378)

Core deposit intangibles	(10,843)		(14,017)
Loan origination costs	(6,666)		(8,567)
Depreciation	(3,493)		(4,242)


Total deferred tax liabilities	(32,744)		(41,204)
Valuation allowance	—		—
Net deferred tax assets	$	113,580	$	183,602

Schedule of 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)	2023		2022
Balance at January 1,	$	1,437	$	1,437
Increases based on tax positions related to prior years	—		—
Decreases related to settlements with taxing authorities	—		—
Decreases related to lapse of statute of limitation	—		—
Balance at December 31,	$	1,437	$	1,437