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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes is comprised of the following components:
 Years Ended December 31
 202420232022
 (Dollars in thousands)
Current expense
Federal$47,830 $51,771 $60,216 
State17,816 21,123 24,979 
Total current expense65,646 72,894 85,195 
Deferred expense (benefit)
Federal(7,671)1,336 (970)
State(2,929)1,402 (284)
Total deferred expense (benefit)(10,600)2,738 (1,254)
Total expense$55,046 $75,632 $83,941 

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
 202420232022
 (Dollars in thousands)
Computed statutory federal income tax provision$51,897 21.00 %$66,178 21.00 %$73,028 21.00 %
State taxes, net of federal tax benefit12,143 4.91 %17,992 5.71 %19,728 5.67 %
Low Income Housing Project Investments(4,496)(1.82)%(3,740)(1.19)%(3,364)(0.97)%
Nontaxable interest, net(3,653)(1.48)%(3,508)(1.11)%(3,191)(0.92)%
Increase in cash surrender value of life insurance (1,794)(0.73)%(2,133)(0.68)%(1,885)(0.54)%
Increase (decrease) in uncertain positions(1,215)(0.49)%(655)(0.21)%(1,035)(0.30)%
Revaluation of net deferred tax assets(29)(0.01)%255 0.08 %— — %
Stock-based compensation165 0.07 %(127)(0.04)%(202)(0.06)%
Change in valuation allowance65 0.03 %109 0.03 %52 0.01 %
Other tax credits— — %(76)(0.02)%— — %
Other, net1,963 0.79 %1,337 0.43 %810 0.25 %
Total expense$55,046 22.27 %$75,632 24.00 %$83,941 24.14 %
    
The tax-effected components of the net deferred tax asset at December 31 of the years presented were as follows:
20242023
 (Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes$17,720 $14,646 
Allowance for credit losses46,372 38,774 
Derivatives fair value adjustment5,304 7,825 
Employee and director equity compensation1,930 1,660 
Foreign Tax Credit Carryforward89 89 
Loan basis difference fair value adjustment1,612 1,811 
Net operating loss carry-forward627 633 
Net unrealized loss on securities available for sale23,795 29,536 
Operating lease liability15,471 15,387 
State purchased credits21,448 — 
Other621 587 
Gross deferred tax assets$134,989 $110,948 
Valuation allowance (1)(531)(467)
Total deferred tax assets net of valuation allowance$134,458 $110,481 
Deferred tax liabilities
Core deposit and other intangibles$1,453 $2,865 
Deferred loan fees, net8,080 8,160 
Fixed assets14,747 16,606 
Goodwill11,476 11,291 
Prepaid pension7,260 3,482 
Right of use asset14,921 14,781 
Other1,868 1,884 
Gross deferred tax liabilities$59,805 $59,069 
Total net deferred tax asset$74,653 $51,412 
(1)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 2021 through 2023 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, 2021$2,878 
Reduction of tax positions for prior years(1,047)
Increase for prior year tax positions128 
Increase for current year tax positions761 
Balance at December 31, 2022$2,720 
Reduction of tax positions for prior years(959)
Balance at December 31, 2023$1,761 
Reduction of tax positions for prior years(999)
Balance at December 31, 2024$762 
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 $160,000, $343,000, and $544,000 at December 31, 2024, 2023, and 2022, respectively.