Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, December 31, 2021, and December 31, 2020, were as follows:

(dollars in thousands)	2022			2021		2020
Current:
Federal	$	59,855		$	58,652	$	65,840
State		7,688			10,510		12,066
Total Current		67,543			69,162		77,906
Deferred:
Federal		(3,247	)		2,254		(31,783	)
State		534			766		(10,803	)
Total Deferred		(2,713	)		3,020		(42,586	)
Provision for Income Taxes	$	64,830		$	72,182	$	35,320

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

As of December 31, 2022, and December 31, 2021, significant components of the Company’s deferred tax liabilities and assets were as follows:

	December 31,
(dollars in thousands)	2022			2021
Deferred Tax Liabilities:
Accelerated Depreciation	$	(7,958	)	$	(8,131	)
Accrued Pension Cost		(11,270	)		(11,270	)
Federal Home Loan Bank of Des Moines Stock		(6,597	)		(2,885	)
Lease Transactions		(25,741	)		(37,585	)
Operating Lease Liabilities		(24,469	)		(25,348	)
Investment in Variable Interest Entities		(700	)		(1,657	)
Deferred Loan Fees		(4,798	)		(3,845	)
Originated Mortgage Servicing Rights		(6,008	)		(6,068	)
Other		(909	)		(915	)
Gross Deferred Tax Liabilities		(88,450	)		(97,704	)
Deferred Tax Assets:
Allowance for Credit Losses		40,056			43,348
Minimum Pension Liability		9,046			12,082
Accrued Expenses		20,066			22,416
Postretirement Benefit Obligations		7,005			7,170
Capital Lease Expenses		2,156			2,163
Operating Lease Right-of-Use Assets		26,648			27,360
Restricted Stock		5,988			4,442
Net Unrealized Losses on Investments Securities		147,716			11,868
Deductible State and Local Taxes		2,360			3,239
Low Income Housing Investments		5,349			3,007
Other		5,995			6,089
Gross Deferred Tax Assets Before Valuation Allowance		272,385			143,184
Valuation Allowance		(6,222	)		(3,203	)
Gross Deferred Tax Assets After Valuation Allowance		266,163			139,981
Net Deferred Tax Assets	$	177,713		$	42,277

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, 2022, December 31, 2021, and December 31, 2020:

	2022			2021			2020
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		2.08			2.85			0.81
Low-Income Housing Investments		1.60			0.77			0.82
Investment Tax Credits		(0.28	)		(0.35	)		(1.24	)
Bank-Owned Life Insurance		(0.72	)		(0.48	)		(0.82	)
Tax-Exempt Income		(0.20	)		(0.24	)		(0.50	)
Leveraged Lease		(0.84	)		(0.10	)		(0.56	)
Other		(0.33	)		(1.28	)		(0.83	)
Effective Tax Rate		22.31	%		22.17	%		18.68	%

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, 2022, December 31, 2021, and December 31, 2020:

(dollars in thousands)	2022			2021			2020
Unrecognized Tax Benefits at Beginning of Year	$	4,015		$	5,403		$	6,120
Gross Increases, Related to Tax Positions Taken in a Prior Period		1			261			374
Gross Decreases, Related to Tax Positions Taken in a Prior Period		(26	)		(1,285	)		—
Gross Increases, Related to Current Period Tax Positions		226			234			222
Lapse of Statute of Limitations		(520	)		(598	)		(1,313	)
Unrecognized Tax Benefits at End of Year	$	3,696		$	4,015		$	5,403