Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Taxes |
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Schedule of provision for income taxes |
| | | | | | | | | | | | | Year Ended December 31, | | (Dollars in thousands) | | 2022 | | 2021 | | 2020 | | Current: | | | | | | | | | | | Federal | | $ | 5,940 | | $ | 43,959 | | $ | 16,245 | | State | | | 7,044 | | | 16,512 | | | 13,296 | | Total current tax expense | | | 12,984 | | | 60,471 | | | 29,541 | | Deferred: | | | | | | | | | | | Federal | | | 103,875 | | | 61,521 | | | (36,801) | | State | | | 20,454 | | | 6,744 | | | (9,400) | | Total deferred tax expense (benefit) | | | 124,329 | | | 68,265 | | | (46,201) | | Provision (benefit) for income taxes | | $ | 137,313 | | $ | 128,736 | | $ | (16,660) | |
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Analysis of difference between the provision for income taxes and taxes computed by applying the federal statutory income tax rate to income before provision for income taxes |
| | | | | | | | | | | | | Year Ended December 31, | | (Dollars in thousands) | | 2022 | | 2021 | | 2020 | | Income taxes at federal statutory rate | | $ | 133,006 | | $ | 126,899 | | $ | 21,834 | | Increase (reduction) of taxes resulting from: | | | | | | | | | | | State income taxes, net of federal tax benefit | | | 21,491 | | | 18,372 | | | 3,077 | | Non-deductible merger expenses | | | 415 | | | — | | | 1,344 | | Increase in cash surrender value of BOLI policies | | | (5,105) | | | (3,866) | | | (2,389) | | Tax-exempt interest | | | (7,828) | | | (5,450) | | | (2,257) | | Income tax credits | | | (13,667) | | | (11,759) | | | (7,138) | | Non-deductible FDIC premiums | | | 3,287 | | | 2,380 | | | 1,364 | | Non-deductible executive compensation | | | 4,319 | | | 530 | | | 1,016 | | Benefit of tax loss carryback under CARES Act | | | — | | | — | | | (31,468) | | Other, net | | | 1,395 | | | 1,630 | | | (2,043) | | | | $ | 137,313 | | $ | 128,736 | | $ | (16,660) | |
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Schedule of components of the net deferred tax asset |
| | | | | | | | | | December 31, | | (Dollars in thousands) | | 2022 | | 2021 | | Allowance for credit losses | | $ | 101,416 | | $ | 81,767 | | Share-based compensation | | | 10,509 | | | 6,290 | | Pension plan and post-retirement benefits | | | 1,157 | | | 752 | | Deferred compensation | | | 14,583 | | | 14,437 | | Purchase accounting adjustments | | | 1,484 | | | — | | Accrued expenses | | | 6,953 | | | — | | Other real estate owned | | | 877 | | | 1,577 | | Net operating loss and tax credit carryforwards | | | 27,271 | | | 20,659 | | Nonaccrual Interest | | | 566 | | | 88 | | Lease liability | | | 27,675 | | | 28,514 | | Mark to market assets | | | — | | | 11,788 | | Unrealized losses on investment securities available for sale | | | 215,013 | | | 6,691 | | Other | | | 1,277 | | | 719 | | Total deferred tax assets | | | 408,781 | | | 173,282 | | Depreciation | | | 22,442 | | | 21,028 | | Intangible assets | | | 23,558 | | | 27,732 | | Net deferred loan costs | | | 10,431 | | | 3,579 | | Right of use assets | | | 25,848 | | | 27,136 | | Prepaid expense | | | 836 | | | 725 | | Mark to market liabilities | | | 110,122 | | | — | | Tax deductible goodwill | | | 9,090 | | | 5,994 | | Mortgage servicing rights | | | 21,371 | | | 16,100 | | Purchase accounting adjustments | | | — | | | 890 | | Other | | | 1,776 | | | 302 | | Total deferred tax liabilities | | | 225,474 | | | 103,486 | | Net deferred tax assets before valuation allowance | | | 183,307 | | | 69,796 | | Less, valuation allowance | | | (5,506) | | | (4,832) | | Net deferred tax assets | | $ | 177,801 | | $ | 64,964 | |
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