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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes is comprised of the following components:
 Years Ended December 31
 202320222021
 (Dollars in thousands)
Current expense
Federal$51,771 $60,216 $21,539 
State21,123 24,979 11,054 
Total current expense72,894 85,195 32,593 
Deferred expense (benefit)
Federal1,336 (970)3,032 
State1,402 (284)58 
Total deferred expense (benefit)2,738 (1,254)3,090 
Total expense$75,632 $83,941 $35,683 

The difference between the statutory federal income tax rate and the effective income tax rate reported for the last three years is detailed below:
 Years Ended December 31
 202320222021
 (Dollars in thousands)
Computed statutory federal income tax provision$66,178 21.00 %$73,028 21.00 %$32,902 21.00 %
State taxes, net of federal tax benefit17,992 5.71 %19,728 5.67 %8,754 5.59 %
Low Income Housing Project Investments(3,740)(1.19)%(3,364)(0.97)%(2,308)(1.47)%
Nontaxable interest, net(3,508)(1.11)%(3,191)(0.92)%(1,022)(0.65)%
Increase in cash surrender value of life insurance (2,133)(0.68)%(1,885)(0.54)%(1,405)(0.90)%
Increase (decrease) in uncertain positions(655)(0.21)%(1,035)(0.30)%50 0.03 %
Revaluation of net deferred tax assets255 0.08 %— — %— — %
Stock-based compensation(127)(0.04)%(202)(0.06)%(372)(0.24)%
Change in valuation allowance109 0.03 %52 0.01 %26 0.02 %
Other tax credits(76)(0.02)%— — %— — %
Merger and other related costs (non-deductible)— — %— — %630 0.40 %
Other, net1,337 0.43 %810 0.25 %(1,572)(1.00)%
Total expense$75,632 24.00 %$83,941 24.14 %$35,683 22.78 %
    
The tax-effected components of the net deferred tax asset at December 31 of the years presented were as follows:
20232022
 (Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes$14,646 $16,162 
Allowance for credit losses38,774 42,748 
Derivatives fair value adjustment7,825 14,328 
Employee and director equity compensation1,660 1,388 
Foreign Tax Credit Carryforward89 89 
Loan basis difference fair value adjustment1,811 2,273 
Net operating loss carry-forward633 606 
Net unrealized loss on securities available for sale29,536 38,968 
Operating lease liability15,387 17,069 
Other587 791 
Gross deferred tax assets$110,948 $134,422 
Valuation allowance(467)(358)
Total deferred tax assets net of valuation allowance$110,481 $134,064 
Deferred tax liabilities
Core deposit and other intangibles$2,865 $4,137 
Deferred loan fees, net8,160 8,281 
Derivatives fair value adjustment— — 
Fixed assets16,606 18,132 
Goodwill11,291 11,432 
Prepaid pension3,482 3,469 
Right of use asset14,781 16,565 
Other1,884 2,112 
Gross deferred tax liabilities$59,069 $64,128 
Total net deferred tax asset$51,412 $69,936 

Deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of the tax benefit depends upon the existence of sufficient taxable income in future periods.
Uncertainty in Income Taxes

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as in various states.  The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the 2020 through 2022 tax years including any related income tax filings from its recent acquisitions.  The Company believes that its income tax returns have been filed based upon applicable statutes, regulations and case law in effect at the time of filing, however, the Internal Revenue Service ("IRS") and /or state jurisdictions could disagree with the Company's interpretation upon examination. The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:
(Dollars in thousands)
Balance at December 31, 2020$474 
Reduction of tax positions for prior years$(29)
Increase for current year tax positions$2,433 
Balance at December 31, 2021$2,878 
Reduction of tax positions for prior years(1,047)
Increase for prior year tax position128 
Increase for current year tax positions761 
Balance at December 31, 20222,720 
Reduction of tax positions for prior years(959)
Balance at December 31, 2023$1,761 
Increases to the Company's unrealized tax positions occur as a result of accruing for any unrecognized tax benefit, as well as the accrual of interest and penalties related to prior year positions. Decreases in the Company's unrealized tax positions occur as a result of the statute of limitation lapsing on prior year positions and/or settlements relating to outstanding positions. Additionally, the balances noted in the table above do not include the indirect federal benefit of state tax positions of approximately $343,000, $544,000, and $604,000 at December 31, 2023, 2022, and 2021, respectively.