Income taxes from continuing operations produce effective income tax rates of 15.5% in 2020, 14.8% in 2019, and 12.2% in 2018. These percentages are computed by dividing income tax expense by Income from continuing operations before income taxes.

Income tax expense from continuing operations includes the following components (in thousands):

	Year Ended December 31,
	2020			2019			2018
Current tax
Federal	$	49,053		$	37,134		$	43,027
State		8,171			5,384			4,568
Total current tax expense		57,224			42,518			47,595
Deferred tax
Federal		(4,045	)		(177	)		(19,355	)
State		(791	)		24			(906	)
Total deferred tax benefit		(4,836	)		(153	)		(20,261	)
Total tax expense	$	52,388		$	42,365		$	27,334

Income taxes from discontinued operations produced an effective income tax rate of 18.5% in 2018. This percentage is computed by dividing income tax expense by Income from discontinued operations before income taxes.

Income tax expense from discontinued operations includes the following components (in thousands):

	Year Ended December 31,
	2020		2019		2018
Current tax
Federal	$	—	$	—	$	(154	)
State		—		—		(16	)
Total current tax benefit		—		—		(170	)
Deferred tax
Federal		—		—		—
State		—		—		—
Total deferred tax benefit		—		—		—
Total tax benefit	$	—	$	—	$	(170	)

The reconciliation between the income tax expense and the amount computed by applying the statutory federal tax rate of 21% for income from continuing operations before income taxes is as follows (in thousands):

	Year Ended December 31,
	2020			2019			2018
Statutory federal income tax expense	$	71,167		$	60,053		$	46,955
Tax-exempt interest income		(20,914	)		(18,725	)		(15,525	)
Tax-exempt life insurance related income		(3,420	)		(4,007	)		(1,744	)
Meals, entertainment and related expenses		924			1,647			1,547
State and local income taxes, net of federal tax benefits		5,835			4,273			2,767
Impacts related to the 2017 Tax Act		—			—			(4,974	)
Equity-based compensation		(299	)		(597	)		(2,364	)
Federal tax credits, net of amortization of LIHTC investments		(1,772	)		(980	)		(1,135	)
Other		867			701			1,807
Total tax expense	$	52,388		$	42,365		$	27,334

In preparing its tax returns, the Company is required to interpret tax laws and regulations to determine its taxable income. Periodically, the Company is subject to examinations by various taxing authorities that may give rise to differing interpretations of these laws. Upon examination, agreement of tax liabilities between the Company and the multiple tax jurisdictions in which the Company files tax returns may ultimately be different. The Company is in the examination process with the Internal Revenue Service for tax years 2014 and 2015 and with one state taxing authority for tax years 2016, 2017, and 2018. The Company believes the aggregate amount of any additional

liabilities that may result from these examinations, if any, will not have a material adverse effect on the financial condition, results of operations, or cash flows of the Company.

Deferred income taxes result from differences between the carrying value of assets and liabilities measured for financial reporting and the tax basis of assets and liabilities for income tax return purposes.

The significant components of deferred tax assets and liabilities are reflected in the following table (in thousands):

	December 31,
	2020			2019
Deferred tax assets:
Loans, principally due to allowance for credit losses	$	52,583		$	23,765
Equity-based compensation		6,293			5,809
Accrued expenses		19,878			12,471
Deferred compensation		14,830			14,234
Miscellaneous		6,471			6,499
Total deferred tax assets before valuation allowance		100,055			62,778
Valuation allowance		(3,278	)		(2,332	)
Total deferred tax assets		96,777			60,446
Deferred tax liabilities:
Net unrealized gain on securities available for sale		(97,434	)		(29,668	)
Securities		(13,462	)		(23	)
Land, buildings and equipment		(41,339	)		(32,382	)
Original issue discount		(1,969	)		(2,455	)
Partnership investments		(6,948	)		(2,091	)
Trust preferred securities		(7,538	)		(7,833	)
Intangibles		(15,215	)		(12,503	)
Miscellaneous		(8,430	)		(3,669	)
Total deferred tax liabilities		(192,335	)		(90,624	)
Net deferred tax liability	$	(95,558	)	$	(30,178	)

Included in the miscellaneous deferred tax assets line item above are state net operating loss carryforwards of approximately $1.1 million as of December 31, 2020. Most of these net operating losses expire at various times between 2020 and 2040 and some have an indefinite carryforward. The Company has a full valuation allowance for a majority of these state net operating losses as they are not expected to be realized. In addition, the Company has a valuation allowance of $2.2 million to reduce certain other state deferred tax assets to the amount of tax benefit management believes it will more likely than not realize.

The net deferred tax liability is included in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years prior to 2014 in the jurisdictions in which it files.

The gross amount of unrecognized tax benefits totaled $6.7 million and $5.8 million at December 31, 2020 and 2019, respectively. The total amount of unrecognized tax benefits, net of associated deferred tax benefit, that would impact the effective tax rate, if recognized, would be $5.3 million and $4.6 million at December 31, 2020 and December 31, 2019, respectively. The unrecognized tax benefits relate to state tax positions that have a corresponding federal tax benefit. While it is expected that the amount of unrecognized tax benefits will change in the next twelve months, the Company does not expect this change to have a material impact on the financial condition, results of operations, or cash flows of the Company.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	December 31,
	2020			2019
Unrecognized tax benefits - opening balance	$	5,802		$	4,859
Gross decreases - tax positions in prior period		(96	)		(434	)
Gross increases - current-period tax positions		1,656			1,882
Lapse of statute of limitations		(645	)		(505	)
Unrecognized tax benefits - ending balance	$	6,717		$	5,802