INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

The provision for income taxes is comprised of the following components:


	Years Ended December 31
	2024		2023		2022
	(Dollars in thousands)
Current expense
Federal	$	47,830	$	51,771	$	60,216
State	17,816		21,123		24,979
Total current expense	65,646		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

Schedule of Income Tax Rate Reconciliation

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
	2024				2023				2022
	(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 benefit	12,143		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 compensation	165		0.07	%	(127)		(0.04)	%	(202)		(0.06)	%
Change in valuation allowance	65		0.03	%	109		0.03	%	52		0.01	%
Other tax credits	—		—	%	(76)		(0.02)	%	—		—	%


Other, net	1,963		0.79	%	1,337		0.43	%	810		0.25	%
Total expense	$	55,046	22.27	%	$	75,632	24.00	%	$	83,941	24.14	%

Schedule of Net Deferred Tax Asset

The tax-effected components of the net deferred tax asset at December 31 of the years presented were as follows:


	2024		2023
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	17,720	$	14,646
Allowance for credit losses	46,372		38,774

Derivatives fair value adjustment	5,304		7,825
Employee and director equity compensation	1,930		1,660

Foreign Tax Credit Carryforward	89		89
Loan basis difference fair value adjustment	1,612		1,811
Net operating loss carry-forward	627		633
Net unrealized loss on securities available for sale	23,795		29,536
Operating lease liability	15,471		15,387
State purchased credits	21,448		—

Other	621		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, net	8,080		8,160

Fixed assets	14,747		16,606
Goodwill	11,476		11,291



Prepaid pension	7,260		3,482
Right of use asset	14,921		14,781
Other	1,868		1,884
Gross deferred tax liabilities	$	59,805	$	59,069
Total net deferred tax asset	$	74,653	$	51,412

Reconciliation of Unrecognized Tax Benefits

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 positions	128
Increase for current year tax positions	761
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

Schedule of changes in accrued interest and penalties related to uncertain tax positions

The following table summarizes the changes in accrued interest and penalties related to uncertain tax positions for the periods presented:


	As of December 31
	2024		2023		2022
	(Dollars in thousands)
Beginning Balance	$	689	$	585	$	920
Expense (benefit) recognized in provision for income taxes	(306)		104		(335)

Ending Balance	$	383	$	689	$	585