Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, are as follows:


	Year ended December 31,
($ in thousands)	2023		2022		2021
Current:
Federal	$	40,471	$	42,718	$	29,835
State and local	9,616		11,505		5,198
Total current	50,087		54,223		35,033
Deferred:
Federal	283		1,853		870
State and local	2,097		341		(325)
Total deferred	2,380		2,194		545
Total income tax expense	$	52,467	$	56,417	$	35,578

Schedule of Income Tax Rate Reconciliation

A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate to income before income taxes reflected in the Consolidated Statements of Income is as follows:


	Year ended December 31,
($ in thousands)	2023		2022		2021
Income tax expense at statutory rate	$	51,770	$	54,487	$	35,413
Increase (reduction) in income tax resulting from:
Tax-exempt interest income, net	(4,942)		(4,351)		(3,198)
State and local income taxes, net	9,445		9,767		4,936
Bank-owned life insurance	(888)		(545)		(713)
Non-deductible expenses	2,059		926		1,090


Tax benefit of low-income housing tax credit ("LIHTC") investments, net	(56)		(195)		(132)
Excess tax benefits	(251)		(68)		146
Federal tax credits	(4,364)		(3,661)		(1,136)

Non-taxable donation to charitable foundation	—		—		(263)
Other, net	(306)		57		(565)
Total income tax expense	$	52,467	$	56,417	$	35,578

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows:


	Year ended December 31,
($ in thousands)	2023		2022
Deferred tax assets:
Allowance for loan losses	$	33,423	$	34,507

Loans held-for-sale	4,463		5,917
Other real estate	—		179
Deferred compensation	4,746		3,527

Accrued compensation	6,047		6,294
Unrealized losses on securities, net	33,687		44,094
Net operating losses and tax credits	5,544		5,829
Lease liability accrual	7,101		4,545
Other investments	5,341		4,293
Research and experimental expenses	1,944		—
Fixed assets	2,341		2,867
Other deferred tax assets	4,823		3,596
Total deferred tax assets	109,460		115,648

Deferred tax liabilities:

Acquired loans	2,388		2,212


Intangible assets	8,576		8,676

Right of use asset	6,301		4,374
Other investments	11,834		7,530
Other deferred tax liabilities	841		1,065
Total deferred tax liabilities	29,940		23,857
Net deferred tax asset before valuation allowance	79,520		91,791
Less: valuation allowance	2,812		2,830
Net deferred tax asset	$	76,708	$	88,961

Schedule of Unrecognized Tax Benefits

The activity in the gross liability for unrecognized tax benefits was as follows:


($ in thousands)	2023		2022		2021
Balance at beginning of year	$	2,724	$	2,697	$	3,157
Additions based on tax positions related to the current year	727		683		563
Additions for tax positions of prior years	24		47		436
Settlements for tax positions of prior years	—		(82)		(1,289)
Settlements or lapse of statute of limitations	(398)		(621)		(170)
Balance at end of year	$	3,077	$	2,724	$	2,697