INCOME TAXES (Tables) 10K
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Deferred Tax Assets and Liabilities |
Significant components of the Company’s net deferred tax assets and liabilities consist of the following as of December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
Deferred tax assets: |
|
|
|
|
|
|
AFS securities |
|
$ |
87,641 |
|
$ |
81,507 |
ACL |
|
|
42,393 |
|
|
32,505 |
Loan Fair Value Marks |
|
|
27,623 |
|
|
2,725 |
Net operating loss ("NOL") carryforwards |
|
|
20,399 |
|
|
28,113 |
Lease liabilities |
|
|
18,404 |
|
|
18,283 |
Cash flow hedges |
|
|
11,671 |
|
|
11,422 |
Employee compensation and benefit plans |
|
|
8,556 |
|
|
8,935 |
Other |
|
|
9,873 |
|
|
7,970 |
Total deferred tax assets, gross |
|
|
226,560 |
|
|
191,460 |
Less: valuation allowance |
|
|
(4,419) |
|
|
— |
Total deferred tax assets, net |
|
|
222,141 |
|
|
191,460 |
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
Premises and equipment |
|
|
75,701 |
|
|
59,561 |
Intangibles |
|
|
20,233 |
|
|
6,037 |
Lease ROU asset |
|
|
16,922 |
|
|
16,427 |
Other |
|
|
6,354 |
|
|
4,751 |
Total deferred tax liabilities |
|
|
119,210 |
|
|
86,776 |
Net deferred tax assets |
|
$ |
102,931 |
|
$ |
104,684 |
|
| Summary of NOL and Other Carryforwards |
The NOL carryforwards at December 31, were as follows (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
|
Expiration |
|
|
2024 |
|
Year |
NOL carryforwards – federal (1) (2) |
|
$ |
45,601 |
|
|
2031-2037 |
NOL carryforwards – federal (1) |
|
|
17,582 |
|
|
N/A |
NOL carryforwards – North Carolina (3) |
|
|
70,216 |
|
|
2028-2030 |
NOL carryforwards – Virginia (4) |
|
|
44,745 |
|
|
N/A |
N/A – not applicable as the NOL can be carried forward indefinitely
(1) The Company acquired a portion of these carryforwards and will be subject to limitations that could limit the
Company’s utilization in future periods.
(2) Balance includes recognized built in loss carryforwards that are subject to the same limitations as net operating loss
carryforwards.
(3) Balance is pre-tax and includes the expected effect of the North Carolina rate reprice.
(4) Balance is pre-tax, pre-apportionment, and net of the valuation allowance.
|
| Summary of Components of Income Tax Expense |
The components of income tax expense (benefit) for the years ended December 31, were as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
Current income tax expense: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
16,465 |
|
$ |
33,374 |
|
$ |
19,285 |
State |
|
|
53 |
|
|
2,538 |
|
|
1,104 |
Total current income tax expense |
|
|
16,518 |
|
|
35,912 |
|
|
20,389 |
Deferred tax expense (benefit): |
|
|
|
|
|
|
|
|
|
Federal |
|
|
24,720 |
|
|
3,646 |
|
|
25,145 |
State |
|
|
9,425 |
|
|
(1,475) |
|
|
(90) |
Total deferred income tax expense (1) |
|
|
34,145 |
|
|
2,171 |
|
|
25,055 |
Total income tax expense |
|
$ |
50,663 |
|
$ |
38,083 |
|
$ |
45,444 |
(1) Does not reflect the deferred tax effects of unrealized gains and losses on AFS securities, unrealized gains and losses
for AFS securities transferred to HTM, unrealized gains and losses on BOLI or changes in fair values of cash flow hedges that are included in Accumulated Other Comprehensive (Loss) Income. Refer to Note 12 “Stockholders’ Equity” in this Form 10-K for additional information.
|
| Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income |
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|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
Expected federal income tax expense |
|
$ |
54,557 |
|
$ |
50,361 |
|
$ |
58,790 |
Increase (decrease) in taxes resulting from: |
|
|
|
|
|
|
|
|
|
State income tax expense (benefit), net of federal effect |
|
|
9,446 |
|
|
530 |
|
|
782 |
Tax-exempt income, net of expense disallowance |
|
|
(11,104) |
|
|
(11,123) |
|
|
(11,615) |
Bank owned life insurance |
|
|
(3,282) |
|
|
(2,469) |
|
|
(2,415) |
Other, net |
|
|
1,046 |
|
|
784 |
|
|
(98) |
Total income tax expense |
|
$ |
50,663 |
|
$ |
38,083 |
|
$ |
45,444 |
Effective income tax rate |
|
|
19.5% |
|
|
15.9% |
|
|
16.2% |
|