Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Components of Income Tax Expense |
The components of income tax expense from continuing operations were as follows: | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | (amounts in thousands) | 2021 | | 2020 | | 2019 | | | | | | | Current | | | | | | Federal | $ | 50,971 | | | $ | 30,158 | | | $ | 10,902 | | State | 18,215 | | | 10,825 | | | 5,850 | | Total current expense | 69,186 | | | 40,983 | | | 16,752 | | | | | | | | Deferred | | | | | | Federal | 14,957 | | | 4,882 | | | 8,263 | | State | 2,797 | | | 852 | | | 1,377 | | Total deferred expense | 17,754 | | | 5,734 | | | 9,640 | | | | | | | | Income tax expense | $ | 86,940 | | | $ | 46,717 | | | $ | 26,392 | | | | | | | | | | | | | |
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Schedule of Income (Loss) Before Income Tax Expense (Benefit) |
Effective tax rates differ from the federal statutory rate of 21% at December 31, 2021, December 31, 2020, and 2019, which was applied to income before income tax expense, due to the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2021 | | 2020 | | 2019 | (dollars in thousands) | Amount | | % of pretax income | | Amount | | % of pretax income | | Amount | | % of pretax income | | | | | | | | | | | | | Federal income tax at statutory rate | $ | 92,654 | | | 21.00 | % | | $ | 39,849 | | | 21.00 | % | | $ | 22,634 | | | 21.00 | % | State income tax, net of federal benefit | 16,863 | | | 3.82 | | | 9,225 | | | 4.86 | | | 5,709 | | | 5.30 | | Tax-exempt interest, net of disallowance | (670) | | | (0.15) | | | (492) | | | (0.26) | | | (385) | | | (0.36) | | Bank-owned life insurance | (1,927) | | | (0.44) | | | (1,579) | | | (0.83) | | | (1,677) | | | (1.56) | | Tax credits, net of basis reduction | (11,284) | | | (2.92) | | | (1,062) | | | (0.61) | | | (446) | | | (0.41) | | Equity-based compensation | (8,237) | | | (1.87) | | | 185 | | | 0.10 | | | 132 | | | 0.12 | | Non-deductible executive compensation | 3,195 | | | 0.72 | | | 454 | | | 0.24 | | | 440 | | | 0.41 | | Unrecorded basis difference in foreign subsidiaries | — | | | — | | | (304) | | | (0.16) | | | (144) | | | (0.13) | | Recorded basis difference in foreign subsidiaries | (4,217) | | | (1.00) | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | Other | 563 | | | 0.54 | | | 441 | | | 0.28 | | | 129 | | | 0.12 | | Effective income tax rate | $ | 86,940 | | | 19.70 | % | | $ | 46,717 | | | 24.62 | % | | $ | 26,392 | | | 24.49 | % |
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Components of Net Deferred Tax Assets (Liabilities) |
The following represents Customers' deferred tax asset and liabilities as December 31, 2021 and 2020: | | | | | | | | | | | | | December 31, | (amounts in thousands) | 2021 | | 2020 | Deferred tax assets | | | | Allowance for credit losses on loans and leases | $ | 36,111 | | | $ | 37,503 | | | | | | | | | | | | | | Net operating losses | 825 | | | 916 | | | | | | | | | | Compensation and benefits | 8,356 | | | 8,564 | | | | | | Cash flow hedge | — | | | 10,703 | | | | | | | | | | | | | | | | | | Lease liability | 3,806 | | | 4,683 | | Net unrealized losses on securities | 1,748 | | | — | | Accrued severance | 4,740 | | | — | | Other | 3,080 | | | 2,830 | | Total deferred tax assets | 58,666 | | | 65,199 | | | | | | | | | | Deferred tax liabilities | | | | | | | | Net deferred loan fees and costs | (6,405) | | | (2,335) | | | | | | Tax qualified lease adjustments | (50,605) | | | (38,527) | | Right of use asset | (3,321) | | | (4,312) | | Net unrealized gains on securities | — | | | (8,194) | | Other | (1,173) | | | (1,284) | | Total deferred tax liabilities | (61,504) | | | (54,652) | | Net deferred tax asset/(liability) (1) | $ | (2,838) | | | $ | 10,547 | |
(1) Excludes net deferred tax asset (liability) of BMT included in assets or liabilities of discontinued operations.
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