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Income Taxes | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Note 15. Income Taxes Income tax expense included in net income consisted of the following components:
| Years Ended December 31, |
($ in thousands) | 2025 |  | 2024 |  | 2023 |
Included in net income |  |  |  |  |  |
Current federal | $ | 89,830 |  | $ | 94,382 |  | $ | 72,884 |
Current state |  | 13,270 |  |  | 14,477 |  |  | 10,656 |
Total current provision |  | 103,100 |  |  | 108,859 |  |  | 83,540 |
Deferred federal |  | 21,114 |  |  | 3,648 |  |  | 12,139 |
Deferred state |  | 2,108 |  |  | 651 |  |  | 1,847 |
Total deferred provision |  | 23,222 |  |  | 4,299 |  |  | 13,986 |
Total expense included in net income | $ | 126,322 |  | $ | 113,158 |  | $ | 97,526 |
Income tax expense does not reflect the tax effects of amounts recognized in other comprehensive income and in AOCI, a separate component of stockholders’ equity. These amounts include unrealized gains and losses on securities available for sale or transferred to held to maturity, unrealized gains and losses on derivatives and hedging transactions, and valuation adjustments of defined benefit and other post-retirement benefit plans. Refer to Note 13 – Stockholders’ Equity for additional information. Temporary differences arise between the tax bases of assets or liabilities and their carrying amounts for financial reporting purposes. The expected tax effects from when these differences are resolved are recorded currently as deferred tax assets or liabilities. Significant components of the Company’s deferred tax assets and liabilities were as follows:
| December 31, |
($ in thousands) | 2025 |  | 2024 |
Deferred tax assets: |  |  |  |
Allowance for loan losses | $ | 73,479 |  | $ | 80,270 |
Federal and state net operating loss |  | 8,483 |  |  | 2,560 |
Lease liability |  | 27,399 |  |  | 26,686 |
Net unrealized losses on securities available-for-sale and cash flow hedges |  | 93,189 |  |  | 155,432 |
Derivatives |  | 12,304 |  |  | 22,840 |
Other |  | 10,015 |  |  | 14,271 |
Gross deferred tax assets |  | 224,869 |  |  | 302,059 |
Valuation allowance |  | (5,928 | ) |  | (4,623 | )
Net deferred tax assets | $ | 218,941 |  | $ | 297,436 |
Deferred tax liabilities: |  |  |  |
Employee compensation and benefits | $ | (20,660 | ) | $ | (14,708 | )
Fixed assets & intangibles |  | (35,435 | ) |  | (33,500 | )
Lease financing |  | (66,455 | ) |  | (60,354 | )
Right-of-use asset |  | (23,014 | ) |  | (22,383 | )
Loan purchase accounting adjustments |  | — |  |  | (8 | )
Other |  | (17,579 | ) |  | (19,916 | )
Gross deferred tax liabilities | $ | (163,143 | ) | $ | (150,869 | )
Net deferred tax asset | $ | 55,798 |  | $ | 146,567 |
Reported income tax expense differed from amounts computed by applying the statutory income tax rate of 21% for the years ended December 31, 2025, 2024 and 2023 to earnings or loss before income taxes. Historically, the primary differences have been due to tax-exempt income, federal and state tax credits and excess tax benefits from stock-based compensation. The main source of tax credits has been investments in tax-advantaged securities and tax credit projects. These investments are made primarily in the markets we serve and directed at tax credits issued under the Federal and State New Market Tax Credit (NMTC) programs, Low-Income Housing Tax Credit (LIHTC) programs, as well as pre-2018 Qualified Zone Academy Bonds (QZAB) and Qualified School Construction Bonds (QSCB). A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before taxes, prepared in accordance with the revised disclosure requirements of Topic 740, is presented in the table below. Disclosures for the comparative prior periods have been reclassified to conform to the current presentation.
| 2025 |  | 2024 |  | 2023 |
($ in thousands) | Amount |  | % |  | Amount |  | % |  | Amount |  | % |
U.S. federal statutory tax rate | $ | 128,603 |  |  | 21.0 | % | $ | 120,534 |  |  | 21.0 | % | $ | 102,927 |  |  | 21.0 | %
State income taxes, net of federal income tax effect |  | 11,808 |  |  | 1.9 | % |  | 11,953 |  |  | 2.1 | % |  | 9,703 |  |  | 2.0 | %
Effects of cross-border tax laws |  |  |  |  |  |  |  |  |  |  |  |
Other |  | 19 |  |  | 0.0 | % |  | — |  |  | 0.0 | % |  | 2 |  |  | 0.0 | %
Tax credits |  |  |  |  |  |  |  |  |  |  |  |
New market tax credit |  | (4,805 | ) |  | (0.8 | )% |  | (7,268 | ) |  | (1.3 | )% |  | (6,924 | ) |  | (1.4 | )%
Other |  | (2,098 | ) |  | (0.3 | )% |  | (1,743 | ) |  | (0.3 | )% |  | (2,650 | ) |  | (0.5 | )%
Changes in valuation allowances |  | 205 |  |  | 0.0 | % |  | 234 |  |  | 0.0 | % |  | 1,679 |  |  | 0.3 | %
Nontaxable or nondeductible Items |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest |  | (7,773 | ) |  | (1.3 | )% |  | (8,443 | ) |  | (1.5 | )% |  | (8,755 | ) |  | (1.8 | )%
Life insurance contracts |  | (5,882 | ) |  | (1.0 | )% |  | (6,017 | ) |  | (1.0 | )% |  | (4,020 | ) |  | (0.8 | )%
Other |  | 5,571 |  |  | 1.0 | % |  | 3,908 |  |  | 0.7 | % |  | 5,136 |  |  | 1.0 | %
Changes in unrecognized tax benefits |  | 674 |  |  | 0.1 | % |  | — |  |  | 0.0 | % |  | 428 |  |  | 0.1 | %
Income tax expense | $ | 126,322 |  |  | 20.6 | % | $ | 113,158 |  |  | 19.7 | % | $ | 97,526 |  |  | 19.9 | %
There were no activities or transactions with foreign tax effects or effects of changes in tax laws or rates enacted in any of the periods presented. In 2025, state and local income taxes in Florida and Mississippi comprise the majority of the domestic state and local income taxes, net of federal effect category. In 2024, state and local income taxes in Florida, Mississippi, and Tennessee comprise the majority of the domestic state and local income taxes, net of federal effect category. While in 2023, state and local income taxes in Alabama, Florida and Mississippi comprise the majority of the domestic state and local income taxes, net of federal effect category. The Company had approximately $79.2 million in state net operating loss carryforwards that originated in the tax years 2003 through 2025 and begin expiring in 2032. A $79.2 million gross state valuation allowance has been established for all non-bank entity level state net operating loss carryforwards, which translates to a net $3.7 million valuation allowance in the Company’s deferred tax inventory. The remainder of the allowance is related to deferred executive compensation. The impact of this valuation allowance is not material to the financial statements. The tax benefit of a position taken or expected to be taken in a tax return should be recognized when it is more likely than not that the position will be sustained on its technical merits. The liability for unrecognized tax benefits was immaterial as of December 31, 2025, 2024 and 2023. The Company recognizes interest and penalties, if any, related to income tax matters in income tax expense, and the amounts recognized during 2025, 2024 and 2023 were insignificant. Income taxes paid (net of refunds received), disaggregated by jurisdictional categories (U.S. federal, U.S. state and local and non-U.S.) required by the revised requirements of Topic 740, is presented in the table below. The Company did not pay any non-U.S. taxes in years ended December 31, 2025, 2024 or 2023.
| Years Ended December 31, |
($ in thousands) | 2025 |  | 2024 |  | 2023 |
U.S. Federal | $ | 90,888 |  | $ | 52,731 |  | $ | 88,668 |
U.S. state and local |  |  |  |  |  |
Florida | * |  |  | 3,480 |  | * |
Other |  | 12,254 |  |  | 9,900 |  |  | 13,081 |
Total U.S. state and local |  | 12,254 |  |  | 13,380 |  |  | 13,081 |
Total income taxes paid (net of refunds received) | $ | 103,142 |  | $ | 66,111 |  | $ | 101,749 |
* The amount of income tax paid (net of refunds received) during this year does not meet the 5% disaggregation threshold. The Company and its subsidiaries file a consolidated U.S. federal income tax return, as well as filing various state returns. Generally, the federal returns for years prior to 2022 are no longer subject to examination. State returns that are open to examination vary by jurisdiction and are generally open three to four years.

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