INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense

The components of the provision for income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows, in thousands:


	2023		2022		2021
Current:
Federal	$	18,844	$	45,911	$	32,440
State	7,209		13,549		11,352
Total current expense	$	26,053	$	59,460	$	43,792
Deferred:
Federal	$	(7,442)	$	(3,637)	$	8,938
State	(1,754)		(250)		2,605
Total deferred expense (benefit)	(9,196)		(3,887)		11,543
Total income tax expense	$	16,857	$	55,573	$	55,335

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2023 and 2022, were as follows, in thousands:


	2023		2022
Deferred tax assets:
Net unrealized loss on securities carried at fair value reflected in stockholders' equity	$	107,669	$	159,763
Net unrealized loss on derivatives reflected in stockholders’ equity	(382)		210
Net unrealized loss on securities transferred from carried at fair value to held to maturity reflected in stockholders' equity	42,541		45,174
Allowance for credit losses	34,527		28,732
Deferred compensation	13,055		12,861

Net operating loss carryforwards	14,789		21,844


Lease liability	7,241		7,731
Investments in partnerships	2,042		2,843


Other	7,971		5,476
Total deferred tax assets	229,453		284,634
Valuation allowance for deferred tax assets	(13,000)		(19,001)
Total deferred tax assets after valuation allowance	$	216,453	$	265,633


Deferred tax liabilities:



Premises, furniture and equipment	$	8,245	$	9,227


Purchase accounting	10,070		7,954


Lease right-of-use asset	6,391		7,182
Deferred loan costs	6,031		6,078
Other	912		3,846
Total deferred tax liabilities	31,649		34,287
Net deferred tax assets	$	184,804	$	231,346

Schedule of Effective Income Tax Rate Reconciliation

The actual income tax expense from continuing operations differs from the expected amounts for the years ended December 31, 2023, 2022, and 2021, (computed by applying the U.S. federal corporate tax rate of 21% for 2023, 2022, and 2021 income before income taxes) are as follows, in thousands:


	2023			2022			2021
Computed "expected" tax on net income	$	20,323		$	56,228		$	57,804
Increase (decrease) resulting from:
Tax-exempt interest benefit	(2,624)			(5,804)			(5,504)
State income taxes, net of federal tax benefit	4,310			10,523			11,026

Tax credits	(6,966)			(6,613)			(7,613)
Partnership investments	1,105			(351)			572

Valuation allowance	214			13			(440)
Excess tax expense/(benefit) on stock compensation	107			(113)			(270)

Other	388			1,690			(240)
Income taxes	$	16,857		$	55,573		$	55,335
Effective tax rates	17.4		%	20.8		%	20.1		%