Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of the Company's Income Tax Expense (Benefit)

The components of the Company’s income tax expense (benefit) are as follows:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Current taxes:
Federal	$	39,197	$	28,359	$	25,974
State		4,813		5,365		7,443
Deferred taxes		322		7,044		(9,491	)
Total income taxes	$	44,332	$	40,768	$	23,926

Reconciliation of Tax Expense at the Federal Statutory Tax Rate

A reconciliation of tax expense at the federal statutory tax rate applied to income before taxes is presented in the following table. The federal statutory tax rate was 21% in 2022, 2021 and 2020:

	Year Ended December 31,
	2022			2021			2020
	(Dollars in thousands)
Tax expense at the federal statutory tax rate	$	49,861		$	43,764		$	25,937
Increase (decrease) in tax expense from:
Tax-exempt income, net		(337	)		(436	)		(507	)
Modified endowment life contracts		(487	)		(501	)		(508	)
Share based compensation excess tax benefit		(2,905	)		(1,643	)		(412	)
Tax deductible dividends paid on ESOP		(481	)		(490	)		(453	)
State tax expense, net of federal tax benefit		3,788			4,779			5,606
Bargain purchase gain		—			(1,007	)		—
Utilization of tax credits:
New markets tax credits, net of tax expense		(3,745	)		(3,192	)		(3,121	)
Low-income housing tax credits, net of amortization		(1,024	)		(1,533	)		(1,273	)
Other tax credits		(91	)		(379	)		(320	)
Other, net		(247	)		1,406			(1,023	)
Total tax expense	$	44,332		$	40,768		$	23,926

Summary of Net Deferred Tax Asset Reported in Other Assets

The net deferred tax asset consisted of the following and is reported in other assets:

	December 31,
	2022			2021
	(Dollars in thousands)
Unrealized net losses on securities	$	22,107		$	—
Provision for credit losses		20,988			17,654
Write-downs of other real estate owned		938			255
Deferred compensation		2,142			2,320
Stock-based compensation		1,643			1,575
Investments in partnership interests		6,056			3,840
Other		1,123			901
Gross deferred tax assets		54,997			26,545
Unrealized net gains on securities		—			(684	)
Premium on securities of banks acquired		(98	)		(120	)
Intangibles		(6,346	)		(5,756	)
Basis difference related to tax credits		(4,118	)		(2,979	)
Depreciation		(20,360	)		(14,545	)
Prepaid expense deducted		(1,139	)		(1,120	)
Other		(185	)		(169	)
Gross deferred tax liabilities		(32,246	)		(25,373	)
Net deferred tax asset	$	22,751		$	1,172