Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax provision for the years ended December 31, 2023, 2022, and 2021:



(in thousands)	2023		2022		2021
Current Expense:
Federal	$	72,224	$	70,982	$	71,969
State	37,365		28,461		25,086
Total current tax expense	$	109,589	$	99,443	$	97,055
Deferred tax expense:
Federal	$	6,794	$	11,636	$	32,099
State	6,101		2,747		8,706
Total deferred tax expense	12,895		14,383		40,805
Total	$	122,484	$	113,826	$	137,860

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of income taxes computed at the Federal statutory rate to the actual effective rate for the years ended December 31, 2023, 2022, and 2021:


	2023		2022		2021
Statutory Federal income tax rate	21.0	%	21.0	%	21.0	%
State tax, net of Federal benefit	6.2	%	5.8	%	5.6	%






Non-deductible FDIC Premiums	1.7	%	0.4	%	0.2	%
Net tax-exempt interest income	(2.2)	%	(1.5)	%	(0.9)	%

Other	(0.7)	%	(0.4)	%	(1.2)	%
Effective income tax rate	26.0	%	25.3	%	24.7	%

Schedule of Deferred Tax Assets and Liabilities

The following table reflects the effects of temporary differences that give rise to the components of the net deferred tax asset as of December 31, 2023 and 2022:


(in thousands)	December 31, 2023		December 31, 2022
Deferred tax assets:
Net unrealized losses on investment securities	$	303,465	$	140,227
Acquired loans	146,315		4,644
Allowance for credit losses	115,777		79,312
Accrued severance and deferred compensation	39,904		16,523
Operating lease liabilities	33,956		23,603
Other	54,181		35,459
Total gross deferred tax assets	693,598		299,768
Deferred tax liabilities:
Other intangible assets	155,642		156
Direct financing leases	42,825		41,120
Deferred loan fees and costs	34,402		25,676
Residential mortgage servicing rights	31,259		49,681
Operating lease right-of-use asset	30,117		20,235
Premises and equipment	20,579		1,575
Fair market value adjustment on junior subordinated debentures	17,287		15,081



Other	14,284		13,421
Total gross deferred tax liabilities	346,395		166,945

Net deferred tax asset	$	347,203	$	132,823