Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense

The following presents the components of income tax expense for the years ended December 31:


(Dollars in thousands)	2024		2023		2022
Current income tax provision (benefit):
Federal	$	31,617	$	(2,231)	$	61,962
State	18,267		1,458		32,754
Total current income tax provision (benefit)	49,884		(773)		94,716
Deferred income tax provision:
Federal	2,949		3,127		3,705

State	834		835		2,194
Total deferred income tax provision	3,783		3,962		5,899
Total income tax provision	$	53,667	$	3,189	$	100,615

Schedule of Reconciliation From Statutory Federal Income Taxes to the Company's Effective Income Taxes

Reconciliations from statutory federal income taxes, which are based on a statutory rate of 21% for 2024, 2023, and 2022, to the Company’s total effective income tax provisions for the years ended December 31 are as follows:


(Dollars in thousands)	2024		2023		2022
Statutory federal income tax provision	$	44,619	$	7,149	$	80,715
State taxes, net of federal income tax effect	14,145		1,132		27,986
BOLI	(2,989)		(2,402)		(2,238)
Tax-exempt interest	(2,442)		(3,084)		(5,215)

LIHTC investments	(2,577)		(2,653)		(2,441)

Stock-based compensation shortfall (windfall)	1,529		(49)		(1,954)

Section 162(m) of the Internal Revenue Code	829		1,825		2,956
Nondeductible meals and parking	607		736		588
Other	(54)		535		218
Total income tax provision	$	53,667	$	3,189	$	100,615

Schedule of Deferred Tax Assets (Liabilities) Comprised of the Temporary Differences Between the Financial Statement Carrying Amounts and the Tax Basis of Assets

Deferred tax assets (liabilities) were comprised of the following temporary differences between the financial statement carrying amounts and the tax basis of assets at December 31:


(Dollars in thousands)	2024		2023
Deferred tax assets:
Accrued expenses	$	5,947	$	5,013
Net operating loss	3,464		7,885
Allowance for credit losses, net of bad debt charge-offs	55,342		60,007
Deferred compensation	2,728		2,940
State taxes	3,452		332

Loan net discounts	9,353		12,240
Stock-based compensation	5,041		4,444
Operating lease liabilities	15,631		13,313
Unrealized loss on AFS investment securities	29,750		39,253
Federal and state credit carryovers	434		157
Other	—		740
Total deferred tax assets	131,142		146,324
Deferred tax liabilities:
Operating lease right-of-use assets	(13,501)		(11,742)

Core deposit intangibles	(8,067)		(10,843)
Loan origination costs	(5,656)		(6,666)
Depreciation	(2,173)		(3,493)

Other	(1,450)		—
Total deferred tax liabilities	(30,847)		(32,744)
Valuation allowance	—		—
Net deferred tax assets	$	100,295	$	113,580

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows:


(Dollars in thousands)	2024		2023
Balance at January 1,	$	1,437	$	1,437
Increases based on tax positions related to prior years	—		—
Decreases related to settlements with taxing authorities	—		—
Decreases related to lapse of statute of limitation	(1,057)		—
Balance at December 31,	$	380	$	1,437