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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Taxes |
Income Taxes | Note 12—Income Taxes The provision for income taxes consists of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
(Dollars in thousands) | ​ | 2023 | ​ | 2022 | ​ | 2021 |
Current: |  | ​ |  |  | ​ |  |  | ​ |  | ​
Federal | ​ | $ | 111,433 | ​ | $ | 5,940 | ​ | $ | 43,959 | ​
State | ​ |  | 23,157 | ​ |  | 7,044 | ​ |  | 16,512 | ​
Total current tax expense | ​ |  | 134,590 | ​ |  | 12,984 | ​ |  | 60,471 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 738 | ​ |  | 103,875 | ​ |  | 61,521 | ​
State | ​ |  | 1,216 | ​ |  | 20,454 | ​ |  | 6,744 | ​
Total deferred tax expense | ​ |  | 1,954 | ​ |  | 124,329 | ​ |  | 68,265 | ​
Provision for income taxes | ​ | $ | 136,544 | ​ | $ | 137,313 | ​ | $ | 128,736 | ​
​ The provision for income taxes differs from that computed by applying the federal statutory income tax rate of 21% in 2023, 2022 and 2021 to income before provision for income taxes, as indicated in the following analysis: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
(Dollars in thousands) | ​ | 2023 | ​ | 2022 | ​ | 2021 |
Income taxes at federal statutory rate |  | $ | 132,479 |  | $ | 133,006 |  | $ | 126,899 | ​
Increase (reduction) of taxes resulting from: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
State income taxes, net of federal tax benefit | ​ |  | 19,123 | ​ |  | 21,491 | ​ |  | 18,372 | ​
Non-deductible merger expenses | ​ | ​ | — | ​ | ​ | 415 | ​ | ​ | — | ​
Increase in cash surrender value of BOLI policies | ​ | ​ | (5,605) | ​ | ​ | (5,105) | ​ | ​ | (3,866) | ​
Tax-exempt interest | ​ |  | (7,016) | ​ |  | (7,828) | ​ |  | (5,450) | ​
Income tax credits | ​ |  | (14,253) | ​ |  | (13,667) | ​ |  | (11,759) | ​
Non-deductible FDIC premiums | ​ | ​ | 5,330 | ​ | ​ | 3,287 | ​ | ​ | 2,380 | ​
Non-deductible executive compensation | ​ | ​ | 4,745 | ​ | ​ | 4,319 | ​ | ​ | 530 | ​
Other, net | ​ |  | 1,741 | ​ |  | 1,395 | ​ |  | 1,630 | ​
​ | ​ | $ | 136,544 | ​ | $ | 137,313 | ​ | $ | 128,736 | ​
​ The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. ​ The components of the net deferred tax asset are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, |
(Dollars in thousands) | ​ | 2023 | ​ | 2022 |
Allowance for credit losses |  | $ | 123,496 |  | $ | 101,416 | ​
Share-based compensation | ​ |  | 10,425 | ​ |  | 10,509 | ​
Pension plan and post-retirement benefits | ​ |  | 371 | ​ |  | 1,157 | ​
Deferred compensation | ​ |  | 14,039 | ​ |  | 14,583 | ​
Purchase accounting adjustments | ​ |  | 1,439 | ​ |  | 1,484 | ​
Capitalized research and development costs | ​ | ​ | 4,524 | ​ | ​ | — | ​
Accrued expenses | ​ | ​ | 14,470 | ​ | ​ | 6,953 | ​
Other real estate owned | ​ |  | — | ​ |  | 877 | ​
FDIC special assessment | ​ | ​ | 6,168 | ​ | ​ | — | ​
Net operating loss and tax credit carryforwards | ​ |  | 20,263 | ​ |  | 27,271 | ​
Nonaccrual Interest | ​ | ​ | 1,773 | ​ | ​ | 566 | ​
Lease liability | ​ | ​ | 26,076 | ​ | ​ | 27,675 | ​
Unrealized losses on investment securities available for sale | ​ | ​ | 142,543 | ​ | ​ | 215,013 | ​
Other | ​ |  | 2,201 | ​ |  | 1,277 | ​
Total deferred tax assets | ​ |  | 367,788 | ​ |  | 408,781 | ​
Depreciation | ​ |  | 10,439 | ​ |  | 22,442 | ​
Intangible assets | ​ |  | 17,764 | ​ |  | 23,558 | ​
Net deferred loan costs | ​ |  | 16,468 | ​ |  | 10,431 | ​
Right of use assets | ​ | ​ | 24,161 | ​ | ​ | 25,848 | ​
Prepaid expense | ​ |  | 809 | ​ |  | 836 | ​
Mark to market liabilities | ​ | ​ | 92,505 | ​ | ​ | 110,122 | ​
Tax deductible goodwill | ​ |  | 12,398 | ​ |  | 9,090 | ​
Mortgage servicing rights | ​ | ​ | 20,863 | ​ | ​ | 21,371 | ​
Other real estate owned | ​ | ​ | 192 | ​ | ​ | — | ​
Other | ​ |  | 3,950 | ​ |  | 1,776 | ​
Total deferred tax liabilities | ​ |  | 199,549 | ​ |  | 225,474 | ​
Net deferred tax assets before valuation allowance | ​ |  | 168,239 | ​ |  | 183,307 | ​
Less, valuation allowance | ​ |  | (3,885) | ​ |  | (5,506) | ​
Net deferred tax assets | ​ | $ | 164,354 | ​ | $ | 177,801 | ​
​ ​ The Company had federal NOL and realized built-in loss carryforwards of $61.0 million and $78.5 million for the years ended December 31, 2023 and 2022, respectively, which expire in varying amounts between 2026 to 2036. All of the Company's loss carryforwards are subject to Section 382 of the Internal Revenue Code, which places an annual limitation on the amount of federal net operating loss carryforwards which the Company may utilize after a change in control, and also limits the Company's ability to utilize certain tax deductions (realized built-in losses or RBIL) due to the existence of a Net Unrealized Built-in Loss (“NUBIL”) at the time of the change in control. The Company acquired federal net operating loss carryforwards of $48.4 million in the acquisition of Atlantic Capital Bank in 2022. Of that amount $40.6 million was from previous acquisitions by Atlantic Capital, and $7.8 million was generated on the final tax return filing. The NOL of $7.8 million was fully utilized in 2022 by SouthState. The other acquired NOLs from Atlantic Capital are subject to a combined annual Section 382 limitation of $4.8 million. In total, the allowable deduction for all loss carryforwards on an annual basis is $17.5 million as of December 31, 2023. The Company is allowed to carry forward any such limited RBIL under terms similar to those related to NOLs. The Company also has an immaterial amount of credit carryforwards, which it expects to fully utilize within the carryforward period. ​ The Company also has acquired state net operating losses in Georgia, Florida and Alabama. These are also subject to annual limitations under Section 382, similar to the federal NOLs. The company also has immaterial state credit carryforwards. The company expects all Section 382 limited state carryforwards and all state credit carryforwards to be realized within the applicable carryforward period. ​ The Company has state net operating loss carryforwards of $115.4 million and $160.4 million for the years ended December 31, 2023 and 2022, respectively, most of which expire in varying amounts through 2040. There is a valuation allowance of $3.9 million on $96.8 million of state operating loss carryforwards at the parent company for which realizability is uncertain. ​ In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income in carryback years, and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets, net of the valuation allowance at December 31, 2023. ​ A reconciliation of the beginning balance and ending amount of unrecognized tax benefits is as follows: ​
​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
(Dollars in thousands) | ​ | 2023 |
Balance at beginning of year |  | $ | — | ​
Increases related to prior year tax positions | ​ |  | 12,352 | ​
Increases related to current year tax positions | ​ | ​ | 693 | ​
Balance at end of year | ​ | $ | 13,045 | ​
​ Accrued interest and penalties on unrecognized tax benefits totaled $1.7 million and $0 as of December 31, 2023 and 2022, respectively. In prior years the Company had no unrecognized tax benefits. Interest and penalties related to unrecognized tax benefits are recorded in interest expense and penalties. Unrecognized tax benefits as of December 31, 2023 and December 31, 2022, that, if recognized, would impact the effective tax rate totaled $0 for each period. The Company’s unrecognized tax benefit relates to accrual deductions, which if challenged by taxing authorities, may be reduced. The Company intends to remediate the uncertainty by filing a change in accounting method with the taxing authority during the period ended December 31, 2024. Upon filing such change, the Company will no longer have any uncertainty regarding its tax position and expects the above amounts to reverse in their entirety. ​ Generally, the Company's federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2020.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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