Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense for the years indicated:


	Year Ended December 31,
	2024		2023		2022
	(In thousands)
Current Tax Expense:
Federal	$	45,554	$	34,219	$	63,833
State	1,156		3,387		44,734
Total current tax expense	46,710		37,606		108,567
Deferred Tax (Benefit) Expense:
Federal	(6,082)		(238,865)		35,789
State	1,138		(110,942)		(401)
Total deferred tax (benefit) expense	(4,944)		(349,807)		35,388
Total income tax (benefit) expense	$	41,766	$	(312,201)	$	143,955

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable federal statutory income tax rates of 21% for 2024, 2023, and 2022 to earnings before income taxes:


	Year Ended December 31,
	2024		2023		2022
	(In thousands)
Computed expected income tax (benefit) expense at federal statutory rate	$	35,417	$	(464,381)	$	119,189
State tax (benefit) expense, net of federal tax benefit	12,657		(156,669)		36,310
Goodwill impairment	—		286,811		—
Tax‑exempt interest benefit	(15,572)		(12,518)		(12,293)
Increase in cash surrender value of life insurance	(1,246)		(1,455)		(1,246)
Low income housing tax credits, net of amortization	(12,378)		(8,574)		(7,158)
Nondeductible employee compensation	1,683		3,947		6,067
Nondeductible acquisition‑related expense	—		5,456		—
Nondeductible FDIC premiums	9,377		18,973		4,257
Change in unrecognized tax benefits	40		443		(2,017)
Valuation allowance change	(2,115)		(5,948)		1,805
Disallowed interest	11,043		12,318		2,455
Equity compensation shortfall (windfall)	4,991		4,949		(410)




State rate and apportionment changes	(4,662)		2,240		(2,189)
Other, net	2,531		2,207		(815)
Recorded income tax (benefit) expense	$	41,766	$	(312,201)	$	143,955

Schedule of Deferred Tax Assets and Liabilities

The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated:


	December 31,
	2024		2023
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	78,096	$	90,531
Fair value mark on acquired loans	65,100		96,844
Interest on nonaccrual loans	4,569		4,866
Deferred compensation	4,902		5,256

Foreclosed assets valuation allowance	335		663


Net operating losses	292,843		282,127

Accrued liabilities	102,232		106,834
Unrealized loss from FDIC‑assisted acquisitions	413		767
Unrealized loss on securities available-for-sale	79,977		101,602
Unrealized loss on securities held-to-maturity	62,162		71,197
Tax mark-to-market on loans	250		—

Goodwill	73,863		81,607
Tax credits	130,522		80,610
Lease liability	35,447		45,742
FDIC indemnification asset	7,028		9,273


Other	3,159		1,582
Gross deferred tax assets	940,898		979,501
Valuation allowance	(19,015)		(21,061)
Deferred tax assets, net of valuation allowance	921,883		958,440
Deferred Tax Liabilities:
Core deposit and customer relationship intangibles	27,292		29,885
Deferred loan fees and costs	2,193		1,039
Unrealized gain on credit-linked notes	1,452		2,212
Premises and equipment, principally due to differences in depreciation	5,710		6,682
FHLB stock	553		4,717
Tax mark-to-market on loans	—		539
Subordinated debt	14,789		15,862
Equity investments	9,695		9,953

Operating leases	110,415		110,522
ROU assets	29,197		37,918

Gross deferred tax liabilities	201,296		219,329
Total net deferred tax assets	$	720,587	$	739,111

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company's unrecognized tax benefits for the years indicated:


	Year Ended December 31,
Unrecognized Tax Benefits	2024		2023
	(In thousands)
Balance, beginning of year	$	1,598	$	407
Increase based on tax positions related to prior years	—		1,598
Reductions for tax positions related to prior years	(953)		(407)


Balance, end of year	$	645	$	1,598

Unrecognized tax benefits that would affect the effective tax rate if recognized	$	645	$	1,598