INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income Tax Expense in Consolidated Statements of Income

The income tax expense in the consolidated statements of income consists of the following:


	For the Years Ended December 31,
(dollars in thousands)	2023		2022		2021
Current - federal	$	84,835	$	114,346	$	67,076
Current - state	23,463		27,889		13,712
Deferred - federal	(16,882)		(27,408)		30,321
Deferred - state	(3,586)		(8,269)		8,090

	$	87,830	$	106,558	$	119,199

Schedule of Reconciliation of Differences in Company's Income Tax Expense

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:


	For the Years Ended December 31,
(dollars in thousands)	2023			2022			2021
Federal income statutory rate	21		%	21		%	21		%

Tax at federal income tax rate	$	74,956		$	95,151		$	104,166
Change resulting from:
State income tax, net of federal benefit	14,950			13,763			18,923
Tax-exempt interest	(1,907)			(2,775)			(3,479)
Increase in cash value of bank owned life insurance	(1,701)			(1,399)			(997)
Excess tax (benefit) deficiency from stock compensation	(518)			(510)			(277)
Nondeductible merger expenses	—			167			142
Other	2,050			2,161			721

Provision for income taxes	$	87,830		$	106,558		$	119,199

Schedule of Components of Deferred Income Taxes

The components of deferred income taxes are as follows:


	December 31,
(dollars in thousands)	2023		2022
Deferred tax assets
Allowance for credit losses	$	88,494	$	64,742
Deferred compensation	13,822		13,287
Deferred loan fees	—		668



Purchase accounting adjustments	3,442		5,153

Other real estate owned	18		201
Net operating loss tax carryforward	12,779		14,070
Tax credit carryforwards	139		149
Unrealized loss on securities available for sale	11,218		14,635

Capitalized costs, accrued expenses and other	8,297		3,432
Lease liability	15,081		16,505
	153,290		132,842
Deferred tax liabilities
Premises and equipment	12,167		12,680
Mortgage servicing rights	34,989		30,903
Subordinated debentures	6,149		6,551
Lease financing	9,753		9,442
Goodwill and intangible assets	22,918		24,946

Origination costs	9,984		6,239
Right of use lease asset	12,854		14,280
Deferred loan fees	318		—
	109,132		105,041

Net deferred tax asset (liability)	$	44,158	$	27,801

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows.


	For the Years Ended December 31,
(dollars in thousands)	2023		2022
Beginning Balance	$	1,001	$	1,903
Current Activity:
Additions for tax positions of prior years	479		2,319
Additions from acquisitions	—		1,001
Reductions for statutes of limitations expiring	(870)		—
Settlements	—		(4,222)
Ending Balance	$	610	$	1,001