Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Summary of Company's Tax Provision and Applicable Tax Rates

The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated:

	For the Year Ended December 31,
	2023			2022			2021
	(Dollars in thousands)
Combined federal and state income tax provisions	$	(63,309)		$	51,719		$	30,464
Effective income tax rates	50.25		%	21.71		%	17.32		%

The provision for income taxes is comprised of the following components:

	For the Year Ended December 31,
	2023		2022		2021
	(In thousands)
Current tax (benefit) expense:
Federal	$	(39,710)	$	36,436	$	23,923
State	(5,332)		10,021		12,204
Total current tax (benefit) expense	(45,042)		46,457		36,127
Deferred tax (benefit) expense:
Federal	1,219		(1,028)		(7,984)
State	(19,486)		6,290		2,321
Total deferred tax (benefit) expense	(18,267)		5,262		(5,663)
Total income tax (benefit) expense	$	(63,309)	$	51,719	$	30,464

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is detailed below:

	For the Year Ended December 31,
	2023				2022				2021
	(Dollars in thousands)
Income tax (benefit) expense at statutory rate	$	(26,458)	21.00	%	$	50,029	21.00	%	$	36,959	21.00	%
(Decrease) increase resulting from:
State income tax, net of federal tax benefit (1)	(19,606)		15.56	%	12,885		5.41	%	11,475		6.53	%
Valuation allowance	—		—	%	(700)		(0.29)	%	(11,300)		(6.42)	%
Amortization of qualified low-income housing investments	9,577		(7.60)	%	7,503		3.15	%	5,753		3.27	%
Tax credits	(9,183)		7.29	%	(7,300)		(3.06)	%	(6,539)		(3.72)	%
Tax-exempt income	(14,161)		11.24	%	(10,298)		(4.32)	%	(5,665)		(3.22)	%
Other, net	(3,478)		2.76	%	(400)		(0.17)	%	(219)		(0.12)	%
Actual income tax (benefit) expense	$	(63,309)	50.25	%	$	51,719	21.71	%	$	30,464	17.32	%

(1)Includes state tax benefit associated with MSSC liquidation of $23.7 million for the year ended December 31, 2023 described above.

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and deferred tax liabilities are presented below:

	As of December 31,
	2023		2022
	(In thousands)
Deferred tax assets:
Unrealized loss on available for sale securities	$	193,134	$	254,502
Allowance for loan losses	45,189		43,686
Cash flow hedges	12,302		18,192
Leases	15,664		14,858
Charitable contribution limitation carryover	4,844		12,273
Investment losses	7,339		7,918
Accrued expenses	10,042		5,426
Fixed assets	4,142		4,287
Loan basis difference fair value adjustments	3,455		4,009
Employee benefits	—		354
PPP loans fee income	—		58
Other	2,061		2,083
Total deferred tax assets	298,172		367,646
Deferred tax liabilities:
Amortization of intangibles	9,660		16,439
Lease obligation	14,284		13,933
Partnerships	1,971		2,340
Trading securities	3,405		938
Employee benefits	824		—
Other	1,843		2,033
Total deferred tax liabilities	31,987		35,683
Net deferred income tax assets	$	266,185	$	331,963

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits for the periods indicated:

	For the Years Ended December 31,
	2023		2022		2021
	(In thousands)
Beginning	$	5,782	$	7,923	$	—
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	—		—		7,923
Reductions related to settlements with taxing authorities	—		—		—
Reductions as a result of a lapse of the applicable statute of limitations	(2,279)		(2,141)		—
Ending	$	3,503	$	5,782	$	7,923