Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of the Company's Provision for Income Taxes

The components of the Company’s provision for income taxes for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, were as follows:

(dollars in thousands)	2021		2020			2019
Current:
Federal	$	58,652	$	65,840		$	60,902
State		10,510		12,066			14,426
Total Current		69,162		77,906			75,328
Deferred:
Federal		2,254		(31,783	)		(9,630	)
State		766		(10,803	)		(5,785	)
Total Deferred		3,020		(42,586	)		(15,415	)
Provision for Income Taxes	$	72,182	$	35,320		$	59,913

Schedule of Significant Components of the Company's Deferred Tax Liabilities and Assets

As of December 31, 2021, and December 31, 2020, significant components of the Company’s deferred tax liabilities and assets were as follows:

	December 31,
(dollars in thousands)	2021			2020
Deferred Tax Liabilities:
Accelerated Depreciation	$	(8,131	)	$	(8,042	)
Accrued Pension Cost		(11,270	)		(11,270	)
Federal Home Loan Bank of Des Moines Stock		(2,885	)		(3,416	)
Lease Transactions		(37,585	)		(41,726	)
Operating Lease Liabilities		(25,348	)		(26,387	)
Energy Tax Credits		—			(674	)
Net Unrealized Gains on Investments Securities		—			(18,407	)
Investment in Variable Interest Entities		(1,657	)		(2,725	)
Deferred Loan Fees		(3,845	)		(4,736	)
Originated Mortgage Servicing Rights		(6,068	)		(5,579	)
Other		(915	)		(1,124	)
Gross Deferred Tax Liabilities		(97,704	)		(124,086	)
Deferred Tax Assets:
Allowance for Credit Losses		43,348			57,840
Minimum Pension Liability		12,082			13,430
Accrued Expenses		22,416			17,629
Postretirement Benefit Obligations		7,170			7,980
Capital Lease Expenses		2,163			2,168
Operating Lease Right-of-Use Assets		27,360			28,473
Restricted Stock		4,442			3,669
Net Unrealized Losses on Investments Securities		11,868			—
Deductible State and Local Taxes		3,239			3,366
Low Income Housing Investments		3,007			3,648
Other		6,089			6,204
Gross Deferred Tax Assets Before Valuation Allowance		143,184			144,407
Valuation Allowance		(3,203	)		(3,597	)
Gross Deferred Tax Assets After Valuation Allowance		139,981			140,810
Net Deferred Tax Assets	$	42,277		$	16,724

Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2021, December 31, 2020, and December 31, 2019:

	2021			2020			2019
Statutory Federal Income Tax Rate		21.00	%		21.00	%		21.00	%
Increase (Decrease) in Income Tax Rate Resulting From:
State Taxes, Net of Federal Income Tax		2.85			0.81			2.53
Low-Income Housing Investments		0.77			0.82			0.60
Investment Tax Credits		(0.35	)		(1.24	)		(0.84	)
Bank-Owned Life Insurance		(0.48	)		(0.82	)		(0.51	)
Tax-Exempt Income		(0.24	)		(0.50	)		(0.53	)
Leveraged Lease		(0.10	)		(0.56	)		(1.54	)
Other		(1.28	)		(0.83	)		0.25
Effective Tax Rate		22.17	%		18.68	%		20.96	%

Schedule of Reconciliation of the Company's Liability for Unrecognized Tax Benefits

The following presents a reconciliation of the Company’s liability for UTBs for the years ended December 31, 2021, December 31, 2020, and December 31, 2019:

(dollars in thousands)	2021			2020			2019
Unrecognized Tax Benefits at Beginning of Year	$	5,403		$	6,120		$	5,541
Gross Increases, Related to Tax Positions Taken in a Prior Period		261			374			673
Gross Decreases, Related to Tax Positions Taken in a Prior Period		(1,285	)		—			—
Gross Increases, Related to Current Period Tax Positions		234			222			715
Lapse of Statute of Limitations		(598	)		(1,313	)		(809	)
Unrecognized Tax Benefits at End of Year	$	4,015		$	5,403		$	6,120