Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 are as follows:


(in thousands)	2021		2020		2019
Current tax expense:
Federal	$	23,225	$	7,401	$	9,748
State	4,681		2,163		2,279



Deferred tax expense (benefit)	5,803		(12,176)		670
Total income tax expense (benefit)	$	33,709	$	(2,612)	$	12,697

Schedule of Effective Income Tax Rate Reconciliation

The following table shows a reconciliation of the income tax expense (benefit) at the statutory federal income tax rate to the Company’s effective income tax rate for the three years ended December 31, 2021:


	2021				2020				2019
(in thousands, except percentages)	Amount		%		Amount		%		Amount		%
Tax expense (benefit) calculated at the statutory federal income tax rate	$	30,244	21.00	%	$	(910)	21.00	%	$	13,447	21.00	%
Increases (decreases) resulting from:


Non-taxable interest income	(350)		(0.24)	%	(634)		14.62	%	(1,132)		(1.77)	%
Non-taxable BOLI income	(1,146)		(0.80)	%	(1,196)		27.59	%	(1,199)		(1.87)	%
Stock-based compensation	(856)		(0.59)	%	(55)		1.27	%	(454)		(0.71)	%
State and city income taxes, net of federal income tax benefit	3,697		2.57	%	1,709		(39.43)	%	1,800		2.81	%
Rate differential on deferred items	769		0.53	%	(1,907)		44.00	%	162		0.25	%
Noncontrolling interest	548		0.38	%	—		—	%	—		—	%
Disallowed interest expense allocable to tax exempt securities and other expenses	421		0.29	%	396		(9.14)	%	624		0.97	%
Other, net	382		0.27	%	(15)		0.36	%	(551)		(0.85)	%
Total income tax expense (benefit)	$	33,709	23.41	%	$	(2,612)	60.27	%	$	12,697	19.83	%

Schedule of Deferred Tax Assets

The composition of the net deferred tax asset is as follows:


	December 31,
(in thousands)	2021		2020
Tax effect of temporary differences
Lease liability	$	34,935	$	—
Provision for loan losses	15,669		25,548
Deferred compensation expense	4,258		2,509
Interest income on nonaccrual loans	1,153		1,317
Dividend income	408		803
Stock-based compensation expense	865		583
Goodwill amortization	(4,707)		(4,603)
Depreciation and amortization	(2,892)		(5,166)
Net unrealized gains in other comprehensive (loss) income	(4,833)		(10,246)
Right-of-use asset	(34,491)		—
Other	936		946
Net deferred tax assets	$	11,301	$	11,691