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INCOME TAXES
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax expense in the consolidated statements of income consists of the following:
For the Years Ended December 31,
(dollars in thousands)202020192018
Current - federal$73,705 $21,994 $27,714 
Current - state12,479 5,328 1,375 
Deferred - federal(7,881)19,639 496 
Deferred - state(47)3,182 878 
$78,256 $50,143 $30,463 

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:
For the Years Ended December 31,
(dollars in thousands)202020192018
Federal income statutory rate21 %21 %21 %
Tax at federal income tax rate$71,460 $44,433 $31,813 
Change resulting from:
State income tax, net of federal benefit9,812 7,389 1,965 
Tax-exempt interest(3,726)(2,911)(3,095)
Increase in cash value of bank owned life insurance(594)(581)(382)
Excess tax (benefit) deficiency from stock compensation371 (108)(602)
Nondeductible merger expenses2 799 1,002 
Other2,827 1,122 (238)
Benefit related to carryback claims resulting from the CARES Act(1,896)— — 
Provision for income taxes$78,256 $50,143 $30,463 

The components of deferred income taxes are as follows:
December 31,
(dollars in thousands)20202019
Deferred tax assets
Allowance for credit losses$59,643 $9,596 
Deferred compensation5,722 3,459 
Deferred loan fees5,224 — 
Deferred gain on interest rate swap— 39 
Nonaccrual interest— 107 
Purchase accounting adjustments17,266 21,104 
Other real estate owned2,647 4,556 
Net operating loss tax carryforward17,176 18,775 
Tax credit carryforwards931 3,701 
FDIC-assisted transaction adjustments— 2,060 
Capitalized costs, accrued expenses and other2,815 4,840 
Lease liability19,314 10,619 
130,738 78,856 
December 31,
(dollars in thousands)20202019
Deferred tax liabilities
Premises and equipment14,337 12,211 
Mortgage servicing rights35,806 25,990 
Subordinated debentures6,169 7,226 
Goodwill and intangible assets13,165 15,756 
Unrealized gain on securities available for sale9,263 5,430 
Right of use lease asset18,684 10,063 
97,424 76,676 
Net deferred tax asset$33,314 $2,180 

At December 31, 2020, the Company had federal net operating loss carryforwards of approximately $68.4 million which expire at various dates from 2027 to 2035. At December 31, 2020, the Company had state net operating loss carryforwards of approximately $64.9 million which expire at various dates from 2027 to 2035. The federal net operating loss carryforwards are subject to limitations pursuant to Section 382 of the Internal Revenue Code and are expected to be recovered over the next 15 years. The state net operating loss carryforwards are subject to similar limitations and are expected to be recovered over the next 15 years. Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized.

On March 27, 2020, the CARES Act was signed into law in response to the COVID-19 global pandemic. Section 2303(b) of the CARES Act allows for certain net operating losses generated after December 31, 2017, but before December 31, 2021, to be carried back to the five tax years preceding the loss. The Company has approximately $13.2 million of net operating losses eligible to be carried back to preceding tax years. The Company recorded a benefit of $1.9 million due to the carryback of these net operating losses.

The Company did not record any interest and penalties related to income taxes for the years ended December 31, 2020, 2019 and 2018, and the Company did not have any amount accrued for interest and penalties at December 31, 2020, 2019 and 2018.
The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the various states. The Company is no longer subject to examination by federal taxing authorities for years before 2017 and state taxing authorities for years before 2016.