Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Summary of consolidated income tax expense

The following table is a summary of consolidated income tax expense:


	Years ended
(Dollars in thousands)	December 31, 2024		December 31, 2023	December 31, 2022
Current
Federal	$	23,695	27,626	42,951
State	9,857		16,548	21,950
Total current income tax expense	33,552		44,174	64,901
Deferred 1
Federal	2,010		404	1,712
State	598		103	465
Total deferred income tax expense	2,608		507	2,177
Total income tax expense	$	36,160	44,681	67,078

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1 Includes tax benefit of operating loss carryforwards of $307,000, $313,000, and $315,000 for the years ended December 31, 2024, 2023, and 2022, respectively.

Summary of effective tax rate

Combined federal and state income tax expense differs from that computed at the federal statutory corporate income tax rate as follows:


	Years ended
	December 31, 2024		December 31, 2023		December 31, 2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal income tax benefit	3.6	%	4.9	%	4.8	%

Tax-exempt interest income	(4.5	%)	(4.3	%)	(4.4	%)
Tax credits	(5.5	%)	(5.6	%)	(2.8	%)
Other, net	1.4	%	0.7	%	(0.5	%)
Effective income tax rate	16.0	%	16.7	%	18.1	%

Summary of net deferred tax asset

The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows:


(Dollars in thousands)	December 31, 2024		December 31, 2023
Deferred tax assets
Available-for-sale debt securities	$	102,448	124,533
Allowance for credit losses	56,430		53,074
Employee benefits	12,234		9,465
Operating lease liabilities	9,943		11,093
Deferred compensation	9,144		8,690
Acquisition fair market value adjustments	5,471		3,606
Interest rate swaps	2,356		4,502
Net operating loss carryforwards	567		919
Transferred debt securities	395		1,601

Other	3,951		4,112
Total gross deferred tax assets	202,939		221,595
Deferred tax liabilities
Depreciation of premises and equipment	(21,321)		(17,728)
Deferred loan costs	(10,043)		(10,103)
Operating lease ROU assets	(9,042)		(10,207)
Intangibles	(7,854)		(6,014)
Prepaid assets	(3,146)		(3,098)
Mortgage servicing rights	(2,980)		(3,137)
Debt securities fair value hedge	(2,356)		(4,502)



Other	(7,242)		(7,736)
Total gross deferred tax liabilities	(63,984)		(62,525)
Net deferred tax asset	$	138,955	159,070

Income tax return jurisdictions and years subject to examination

The following schedule summarizes the years that remain subject to examination as of December 31, 2024:


			Years ended December 31,
Federal			2011, 2012, 2013, 2016, 2021, 2022 and 2023
Colorado			2009, 2010, 2011, 2012, 2020, 2021, 2022 and 2023
Arizona, California, Kentucky, Michigan, Minnesota, New Jersey, Texas, & Wisconsin			2020, 2021, 2022 and 2023
Alabama, Alaska, Arkansas, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, Montana, New Mexico, New York, North Carolina, North Dakota, New Hampshire, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, & Virginia			2021, 2022 and 2023