Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The components of income taxes are as follows:


	2022		2021		2020
	(dollars in thousands)
Current tax expense:
Federal	$	44,478	$	35,692	$	38,397
State	6,906		10,646		7,389
Total current tax expense	51,384		46,338		45,786
Deferred tax (benefit) expense:
Federal	8,974		11,081		(18,131)
State	(324)		1,329		(3,460)
Total deferred tax (benefit) expense	8,650		12,410		(21,591)
Total income tax expense	$	60,034	$	58,748	$	24,195

Schedule of Effective Income Tax Rate Reconciliation

The differences between the effective income tax rate and the federal statutory income tax rate are as follows:


	2022		2021		2020
Statutory tax rate	21.0	%	21.0	%	21.0	%
Tax credit investments	(2.0)		(3.0)		(5.7)
Tax-exempt income	(3.5)		(3.0)		(4.9)
Bank owned life insurance	(0.7)		(0.5)		(0.7)
State income taxes, net of federal benefit	1.2		2.6		1.1


Executive compensation	0.3		0.1		—

FDIC Premium	0.3		0.3		0.3
Penalties	—		—		0.2
Other, net	0.7		0.1		0.7
Effective income tax rate	17.3	%	17.6	%	12.0	%

Schedule of Deferred Tax Assets and Liabilities

The net DTA recorded by the Corporation is included in other assets and consists of the following tax effects of temporary differences as of December 31:


	2022		2021
	(dollars in thousands)
Deferred tax assets:
Unrealized holding losses on securities	$	110,689	$	—
Allowance for credit losses	65,481		62,465
State loss carryforwards	26,421		23,996
Lease Liability	21,264		21,034
Tax credit investments	11,186		11,203
Other accrued expenses	10,059		10,633
Deferred compensation	9,014		9,190
Tax credit carryforwards	5,146		27,192
Stock-based compensation	4,681		3,499


Other	8,158		7,348
Total gross deferred tax assets	$	272,099	$	176,560
Deferred tax liabilities:
Equipment lease financing	$	26,560	$	41,049
Right-of-use-asset	19,276		18,671
MSRs	7,750		8,016
Premises and equipment	5,775		9,151
Acquisition premiums/discounts	5,492		5,466
Postretirement and defined benefit plans	1,755		1,243
Unrealized holding gains on AFS securities	—		10,432
Intangible assets	—		1,272
Other	14,507		13,492
Total gross deferred tax liabilities	81,115		108,792
Net deferred tax asset, before valuation allowance	190,984		67,768
Valuation allowance	(26,421)		(23,996)
Net deferred tax asset	$	164,563	$	43,772

Summary of Changes in Unrecognized Tax Benefits

The following table summarizes the changes in unrecognized tax benefits for the years ended December 31:


	2022		2021		2020
	(dollars in thousands)
Balance at beginning of year	$	1,673	$	2,151	$	2,517

Current period tax positions	112		120		95

Lapse of statute of limitations	(557)		(598)		(461)
Balance at end of year	$	1,228	$	1,673	$	2,151

Summary of TCIs and Related Unfunded Commitments

The following table presents the balances of the Corporation's TCIs and related unfunded commitments as of December 31:



		2022		2021
Included in other assets:		(dollars in thousands)
Affordable housing tax credit investments, net		$	161,103	$	161,052
Other tax credit investments, net		61,077		42,987
	Total TCIs, net	$	222,180	$	204,039
Included in other liabilities:
Unfunded affordable housing tax credit commitments		$	53,108	$	49,364
Other tax credit liabilities		46,814		33,941
	Total unfunded tax credit commitments and liabilities	$	99,922	$	83,305

The following table presents other information relating to the Corporation's TCIs for the years ended December 31:


		2022		2021		2020
		(dollars in thousands)
Components of income taxes:
Tax credits and benefits		$	(27,154)	$	(28,141)	$	(32,940)
Amortization of tax credits and benefits, net of tax benefits		19,298		17,378		20,429
Deferred tax expense		766		639		921
	Total reduction in income tax expense	$	(7,090)	$	(10,124)	$	(11,590)
Amortization of TCIs:


	Total amortization of TCIs	$	2,783	$	6,187	$	6,126