Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The components of income taxes are as follows:


	2023		2022		2021
	(dollars in thousands)
Current tax expense:
Federal	$	49,707	$	44,478	$	35,692
State	11,137		6,906		10,646
Total current tax expense	60,844		51,384		46,338
Deferred tax (benefit) expense:
Federal	3,021		8,974		11,081
State	576		(324)		1,329
Total deferred tax (benefit) expense	3,597		8,650		12,410
Total income tax expense	$	64,441	$	60,034	$	58,748

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:


	2023		2022		2021
Statutory tax rate	21.0	%	21.0	%	21.0	%
Tax credit investments	(1.3)		(2.0)		(3.0)
Tax-exempt income	(4.2)		(3.5)		(3.0)
Bank owned life insurance	(0.8)		(0.7)		(0.5)
State income taxes, net of federal benefit	2.6		1.2		2.6


Executive compensation	0.3		0.3		0.1

FDIC Premium	0.5		0.3		0.3

Other, net	0.4		0.7		0.1
Effective income tax rate	18.5	%	17.3	%	17.6	%

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:


	2023		2022
	(dollars in thousands)
Deferred tax assets:
Unrealized holding losses on securities	$	90,671	$	110,689
Allowance for credit losses	71,013		65,481
State loss carryforwards	27,948		26,421
Lease liability	21,570		21,264
Other accrued expenses	11,082		10,059
Deferred compensation	10,215		9,014
Intangible assets	7,460		3,023
Stock-based compensation	5,129		4,681
Tax credit carryforwards	4,995		5,146



Other	5,469		5,223
Total gross deferred tax assets	$	255,552	$	261,001
Deferred tax liabilities:
Equipment lease financing	47,345		26,560
Right-of-use-asset	20,022		19,276

MSRs	7,158		7,750
Acquisition premiums/discounts	5,508		5,492
Postretirement and defined benefit plans	3,438		1,755
Tax credit investments	1,747		3,393
Premises and equipment	1,678		5,775
Other	—		16
Total gross deferred tax liabilities	$	86,896	$	70,017
Net deferred tax asset, before valuation allowance	168,656		190,984
Valuation allowance	(27,948)		(26,421)
Net deferred tax asset	$	140,708	$	164,563

Summary of Changes in Unrecognized Tax Benefits

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


	2023		2022		2021
	(dollars in thousands)
Balance at beginning of year	$	1,228	$	1,673	$	2,151

Current period tax positions	147		112		120

Lapse of statute of limitations	(331)		(557)		(598)
Balance at end of year	$	1,044	$	1,228	$	1,673

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:



		2023		2022
Included in other assets:		(dollars in thousands)
Affordable housing tax credit investments, net		$	170,115	$	161,103
Other tax credit investments, net		35,907		61,077
	Total TCIs, net	$	206,022	$	222,180
Included in other liabilities:
Unfunded affordable housing tax credit commitments		$	58,312	$	53,108
Other tax credit liabilities		28,361		46,814
	Total unfunded tax credit commitments and liabilities	$	86,673	$	99,922

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


		2023		2022		2021
		(dollars in thousands)
Components of income taxes:
Tax credits and benefits		$	(28,748)	$	(27,154)	$	(28,141)
Amortization of tax credits and benefits, net of tax benefits		23,446		19,298		17,378
Deferred tax expense		610		766		639
	Total reduction in income tax expense	$	(4,692)	$	(7,090)	$	(10,124)
Amortization of TCIs:


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