INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The Company's income tax provision consists of the following:


	Year ended December 31,
(Dollars in thousands)	2023		2022		2021
Current income taxes:
Federal taxes	$	81,674	$	63,203	$	32,836
State and local taxes	19,968		18,763		13,421
Deferred income taxes:
Federal taxes	(5,331)		(4,094)		37,251
State and local taxes	(66)		89		2,587
Total	$	96,245	$	77,961	$	86,095

Schedule of Deferred Tax Assets and Liabilities

The following is a summary of the significant components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022:


(Dollars in thousands)	2023		2022
Deferred tax assets:

Allowance for credit losses	$	40,518	$	33,323
Purchase accounting adjustments—loans	10,285		13,807
Reserves and other accruals	25,093		23,189
Investments	763		1,579

Net operating losses	2,725		3,315
Derivatives	2,806		3,521

Lease liabilities	31,835		33,236
Unrealized losses on available-for-sale securities	186,775		212,222
Other(1)	659		1,360
Total deferred tax assets	$	301,459	$	325,552
Deferred tax liabilities:




Accelerated depreciation	(5,790)		(5,994)
Right of use assets	(27,426)		(28,859)

Intangibles	(33,675)		(35,610)
Other(2)	(4,306)		(4,333)
Total deferred tax liabilities	(71,197)		(74,796)
Net deferred tax asset	$	230,262	$	250,756

(1)Other deferred tax assets includes deferred gains, tax credits, and reverse mortgages in 2023 and 2022, and employee benefit plans in 2022.

(2)Other deferred tax liabilities includes deferred loan costs, derivatives and partnership investments in 2023 and 2022, and employee benefit plans in 2023.

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation showing the differences between the Company's effective tax rate and the U.S. Federal statutory tax rate is as follows:


	Year ended December 31,
Year Ended December 31,	2023		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State tax, net of federal tax benefit	4.4		5.1		3.9

Tax-exempt interest	(0.6)		(0.5)		(0.2)
Bank-owned life insurance income	(0.1)		—		(0.1)
Excess tax benefits from share-based compensation	—		—		(0.1)
Nondeductible acquisition costs	—		0.1		0.2
Federal tax credits, net of amortization	(0.5)		(0.4)		(0.5)
Nondeductible compensation	0.1		0.2		—
Nondeductible goodwill	—		0.5		—
Surrender of bank-owned life insurance policies	1.9		—		—
Other	0.1		(0.1)		(0.1)
Effective tax rate	26.3	%	25.9	%	24.1	%