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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense | The components of income tax expense from continuing operations were as follows:
| For the Years Ended December 31,
(amounts in thousands) | 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal | $ | 37,476 |  |  | $ | 50,971 |  |  | $ | 30,158 |
State | 18,880 |  |  | 18,215 |  |  | 10,825 |
Total current expense | 56,356 |  |  | 69,186 |  |  | 40,983 |
Deferred |  |  |  |  |
Federal | 7,249 |  |  | 14,957 |  |  | 4,882 |
State | (342) |  |  | 2,797 |  |  | 852 |
Total deferred expense | 6,907 |  |  | 17,754 |  |  | 5,734 |
Income tax expense | $ | 63,263 |  |  | $ | 86,940 |  |  | $ | 46,717 |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | Effective tax rates differ from the federal statutory rate of 21% at December 31, 2022, 2021, and 2020, which was applied to income before income tax expense, due to the following:
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
(dollars in thousands) | Amount |  | % of pretax income |  | Amount |  | % of pretax income |  | Amount |  | % of pretax income
Federal income tax at statutory rate | $ | 61,173 |  |  | 21.00 | % |  | $ | 92,654 |  |  | 21.00 | % |  | $ | 39,849 |  |  | 21.00 | %
State income tax, net of federal benefit | 9,184 |  |  | 3.15 |  |  | 16,863 |  |  | 3.82 |  |  | 9,225 |  |  | 4.86 |
Tax-exempt interest, net of disallowance | (650) |  |  | (0.22) |  |  | (670) |  |  | (0.15) |  |  | (492) |  |  | (0.26) |
Bank-owned life insurance | (3,084) |  |  | (1.06) |  |  | (1,927) |  |  | (0.44) |  |  | (1,579) |  |  | (0.83) |
Tax credits, net of basis reduction | (8,644) |  |  | (2.97) |  |  | (11,284) |  |  | (2.92) |  |  | (1,062) |  |  | (0.61) |
Equity-based compensation | (2,293) |  |  | (0.79) |  |  | (8,237) |  |  | (1.87) |  |  | 185 |  |  | 0.10 |
Non-deductible executive compensation | 2,074 |  |  | 0.71 |  |  | 3,195 |  |  | 0.72 |  |  | 454 |  |  | 0.24 |
Unrecorded basis difference in foreign subsidiaries | — |  |  | — |  |  | — |  |  | — |  |  | (304) |  |  | (0.16) |
Recorded basis difference in foreign subsidiaries | — |  |  | — |  |  | (4,217) |  |  | (1.00) |  |  | — |  |  | — |
Unrecognized tax benefits | 3,633 |  |  | 1.25 |  |  | — |  |  | — |  |  | — |  |  | — |
Other | 1,870 |  |  | 0.65 |  |  | 563 |  |  | 0.54 |  |  | 441 |  |  | 0.28 |
Effective income tax rate | $ | 63,263 |  |  | 21.72 | % |  | $ | 86,940 |  |  | 19.70 | % |  | $ | 46,717 |  |  | 24.62 | %
Components of Net Deferred Tax Assets (Liabilities) | The following represents Customers' deferred tax asset and liabilities as December 31, 2022 and 2021:
| December 31,
(amounts in thousands) | 2022 |  | 2021
Deferred tax assets |  |  |
Allowance for credit losses on loans and leases | $ | 33,463 |  |  | $ | 36,111 |
Net operating losses | 734 |  |  | 825 |
Compensation and benefits | 7,748 |  |  | 8,356 |
Net deferred loan fees and costs | 11,330 |  |  | — |
Lease liability | 4,868 |  |  | 3,806 |
Net unrealized losses on securities | 57,302 |  |  | 1,748 |
Accrued severance | 4,741 |  |  | 4,740 |
Other | 3,569 |  |  | 3,080 |
Total deferred tax assets | 123,755 |  |  | 58,666 |
Deferred tax liabilities |  |  |
Net deferred loan fees and costs | — |  |  | (6,405) |
Tax qualified lease adjustments | (71,860) |  |  | (50,605) |
Right of use asset | (4,122) |  |  | (3,321) |
Other | (1,964) |  |  | (1,173) |
Total deferred tax liabilities | (77,946) |  |  | (61,504) |
Net deferred tax asset (liability) | $ | 45,809 |  |  | $ | (2,838) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table presents changes in unrecognized tax benefits for the years ended December 31, 2022, 2021, and 2020:
| For the Years Ended December 31,
(amounts in thousands) | 2022 |  | 2021 |  | 2020
Balance at January 1, | $ | — |  |  | $ | — |  |  | $ | — |
Increases related to prior year tax positions | 1,221 |  |  | — |  |  | — |
Decreases related to prior year tax positions | — |  |  | — |  |  | — |
Increases related to current year tax positions | 2,844 |  |  | — |  |  | — |
Settlements | — |  |  | — |  |  | — |
Lapse of statute | — |  |  | — |  |  | — |
Balance at December 31, | $ | 4,065 |  |  | $ | — |  |  | $ | — |

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