Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of the Company's Income Tax Expense (Benefit)

The components of the Company’s income tax expense (benefit) are as follows:

	Year Ended December 31,
	2023			2022		2021
	(Dollars in thousands)
Current taxes:
Federal	$	53,247		$	39,197	$	28,359
State		7,023			4,813		5,365
Deferred taxes		(2,787	)		322		7,044
Total income taxes	$	57,483		$	44,332	$	40,768

Reconciliation of Tax Expense at the Federal Statutory Tax Rate

A reconciliation of tax expense at the federal statutory tax rate applied to income before taxes is presented in the following table. The federal statutory tax rate was 21% in 2023, 2022 and 2021:

	Year Ended December 31,
	2023			2022			2021
	(Dollars in thousands)
Tax expense at the federal statutory tax rate	$	56,689		$	49,861		$	43,764
Increase (decrease) in tax expense from:
Tax-exempt income, net		(343	)		(337	)		(436	)
Modified endowment life contracts		(497	)		(487	)		(501	)
Share based compensation excess tax benefit		(786	)		(2,905	)		(1,643	)
Tax deductible dividends paid on ESOP		(505	)		(481	)		(490	)
State tax expense, net of federal tax benefit		4,945			3,788			4,779
Bargain purchase gain		—			—			(1,007	)
Utilization of tax credits:
New markets tax credits, net of amortization		(777	)		(3,745	)		(3,192	)
Low-income housing tax credits, net of amortization		(1,106	)		(1,024	)		(1,533	)
Other tax credits, net of amortization		(192	)		(91	)		(379	)
Other, net		55			(247	)		1,406
Total tax expense	$	57,483		$	44,332		$	40,768

Summary of Net Deferred Tax Asset Reported in Other Assets

The net deferred tax asset consisted of the following and is reported in other assets:

	December 31,
	2023			2022
	(Dollars in thousands)
Unrealized net losses on securities	$	15,473		$	22,107
Provision for credit losses		22,782			20,988
Write-downs of other real estate owned		2,522			938
Deferred compensation		2,116			2,142
Stock-based compensation		2,199			1,643
Investments in partnership interests		7,260			6,056
Other		911			1,123
Gross deferred tax assets		53,263			54,997
Intangibles		(5,639	)		(6,346	)
Basis difference related to tax credits		(5,462	)		(4,118	)
Depreciation		(21,833	)		(20,360	)
Prepaid expense deducted		(1,243	)		(1,139	)
Other		(181	)		(283	)
Gross deferred tax liabilities		(34,358	)		(32,246	)
Net deferred tax asset	$	18,905		$	22,751