Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Current and Deferred Income Tax Expense (Benefit)

The current and deferred amounts of income tax expense (benefit) were as follows:


	Years Ended December 31,
($ in thousands)	2023		2022		2021
Current
Federal	$	29,319	$	58,982	$	57,916
State	5,283		22,092		12,035
Total current	34,602		81,074		69,951
Deferred
Federal	(8,371)		12,531		9,115
State	(3,135)		(97)		6,247
Total deferred	(11,506)		12,434		15,362
Total income tax expense	$	23,097	$	93,508	$	85,313

Schedule of Deferred Tax Assets and Liabilities

Temporary differences between the amounts reported on the financial statements and the tax bases of assets and liabilities resulted in deferred taxes. DTAs and liabilities at December 31, 2023 and 2022, included in other assets and accrued expenses and other liabilities on the consolidated balance sheets, respectively, were as follows:


($ in thousands)	2023		2022
Deferred tax assets
Allowance for loan losses	$	83,378	$	79,142
Allowance for other losses	8,933		10,558
Accrued liabilities	14,089		2,842
Deferred compensation	28,429		30,246
Federal tax credits carryforward	8,849		—
Benefit of state tax losses and credit carryforwards	9,068		7,476

Nonaccrual interest	901		891
Partnerships	2,365		—
Lease liability	6,785		7,390

Net unrealized losses on AFS securities	48,632		80,148
Net unrealized losses on pension and postretirement benefits	8,506		14,803
Other	9,403		4,545
Total deferred tax assets	$	229,338	$	238,041



Deferred tax liabilities
Prepaid expenses	$	66,381	$	64,480
Goodwill	22,161		23,119
Mortgage banking activities	20,799		20,145
Deferred loan fee income	8,097		4,269
State deferred taxes	1,387		1,389
Lease financing	15,297		3,145
Bank premises and equipment	20,389		20,860
Purchase accounting	7,898		10,381
Basis difference from equity securities and other investments	7,593		5,582

Other	1,207		821
Total deferred tax liabilities	$	171,209	$	154,191
Net deferred tax assets	$	58,129	$	83,850

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the statutory federal tax rate. The major reasons for this difference were as follows:


	2023		2022		2021
Federal income tax rate at statutory rate	21.0	%	21.0	%	21.0	%
Increases (decreases) resulting from:
Tax-exempt interest and dividends	(7.4)	%	(3.4)	%	(3.0)	%
State income taxes (net of federal benefit)	0.3	%	4.2	%	3.8	%
Bank owned life insurance	(1.1)	%	(0.5)	%	(0.6)	%
Tax effect of tax credits and benefits, net of related expenses	(4.7)	%	(1.6)	%	(1.8)	%

Net tax (benefit) from stock-based compensation	—	%	(0.2)	%	—	%


Restructuring in conjunction with ABRC sale	—	%	—	%	(0.1)	%
FDIC premium	3.0	%	0.7	%	0.5	%
Other	0.1	%	0.1	%	(0.2)	%
Effective income tax rate	11.2	%	20.3	%	19.6	%

Summary Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was as follows:


($ in thousands)	2023		2022
Balance at beginning of year	$	2,233	$	2,324
Subtractions for tax positions related to prior years	(441)		(486)

Additions for tax positions related to current year	435		395
Balance at end of year	$	2,227	$	2,233