Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.24.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2023
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):

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​

​

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2023

    

2022

Deferred tax assets:

 

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​

  

AFS securities

​

$

81,507

​

$

96,732

ACL

​

 

32,505

​

 

27,260

NOL carryforwards

​

 

28,113

​

 

38,932

Lease liabilities

​

 

18,283

​

 

11,982

Cash flow hedges

​

​

11,422

​

​

14,517

Employee compensation and benefit plans

​

 

8,935

​

 

5,739

Other

​

 

10,695

​

 

9,361

Total deferred tax assets

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​

191,460

​

​

204,523

Deferred tax liabilities:

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​

 

  

Premises and equipment

​

​

59,561

​

​

59,173

Lease ROU asset

​

​

16,427

​

​

8,846

Intangibles

​

 

6,037

​

 

7,778

Other

​

 

4,751

​

 

4,561

Total deferred tax liabilities

​

 

86,776

​

 

80,358

Net deferred tax assets

​

$

104,684

​

$

124,165

Summary of NOL and Other Carryforwards

The NOL and other carryforwards at December 31, were as follows (dollars in thousands):

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Expiration

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2023

    

Year

NOL carryforwards – federal (1) (2)

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$

50,757

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2031-2037

NOL carryforwards – federal (1)

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​

19,902

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​

N/A

NOL carryforwards – states

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​

208,427

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​

2028-2038

NOL carryforwards – states

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​

152,304

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​

N/A

Other carryforwards – federal

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​

3,329

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​

2029

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) Included in this balance are recognized built in loss carryforwards that are subject to the same limitations as net operating loss carryforwards.

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):

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2023

    

2022

    

2021

Current income tax expense:

​

​

​

​

​

​

​

​

​

Federal

​

$

33,374

​

$

19,285

​

$

10,291

State

​

​

2,538

​

​

1,104

​

​

1,039

Total current income tax expense

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​

35,912

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​

20,389

​

​

11,330

Deferred tax expense (benefit):

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​

​

​

​

​

​

​

​

Federal

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​

3,646

​

​

25,145

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​

44,405

State

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​

(1,475)

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​

(90)

​

​

(893)

Total deferred income tax expense (1)

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​

2,171

​

​

25,055

​

​

43,512

Total income tax expense

​

$

38,083

​

$

45,444

​

$

54,842

(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 11 “Stockholders’ Equity” in this Form 10-K for additional information.

Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income

Income tax expense for 2023, 2022, and 2021 varies from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes. A reconciliation between the expected and actual income tax expense, and resulting effective tax rate, is presented in the following table for the years ended December 31, (dollars in thousands):

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2023

    

2022

    

2021

Expected federal income tax expense

​

$

50,361

​

$

58,790

​

$

66,939

Increase (decrease) in taxes resulting from:

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​

 

  

​

 

  

State income tax expense (benefit), net of federal effect

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530

​

 

782

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(72)

Tax-exempt income, net of expense disallowance

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​

(11,123)

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​

(11,615)

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​

(9,820)

Bank owned life insurance

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​

(2,469)

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​

(2,415)

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​

(2,412)

Other, net

​

 

784

​

 

(98)

​

 

207

Total income tax expense

​

$

38,083

​

$

45,444

​

$

54,842

Effective income tax rate

​

​

15.9%

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​

16.2%

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​

17.2%