INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Income Tax Expense in Consolidated Statements of Income

The income tax expense in the consolidated statements of income consists of the following:


	For the Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Current - federal	$	73,705	$	21,994	$	27,714
Current - state	12,479		5,328		1,375
Deferred - federal	(7,881)		19,639		496
Deferred - state	(47)		3,182		878

	$	78,256	$	50,143	$	30,463

Schedule of Reconciliation of Differences in Company's Income Tax Expense

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)	2020			2019			2018
Federal income statutory rate	21		%	21		%	21		%

Tax at federal income tax rate	$	71,460		$	44,433		$	31,813
Change resulting from:
State income tax, net of federal benefit	9,812			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 compensation	371			(108)			(602)
Nondeductible merger expenses	2			799			1,002
Other	2,827			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

Components of Deferred Income Taxes

The components of deferred income taxes are as follows:


	December 31,
(dollars in thousands)	2020		2019
Deferred tax assets
Allowance for credit losses	$	59,643	$	9,596
Deferred compensation	5,722		3,459
Deferred loan fees	5,224		—
Deferred gain on interest rate swap	—		39

Nonaccrual interest	—		107
Purchase accounting adjustments	17,266		21,104

Other real estate owned	2,647		4,556
Net operating loss tax carryforward	17,176		18,775
Tax credit carryforwards	931		3,701

FDIC-assisted transaction adjustments	—		2,060
Capitalized costs, accrued expenses and other	2,815		4,840
Lease liability	19,314		10,619
	130,738		78,856


	December 31,
(dollars in thousands)	2020		2019
Deferred tax liabilities
Premises and equipment	14,337		12,211
Mortgage servicing rights	35,806		25,990
Subordinated debentures	6,169		7,226

Goodwill and intangible assets	13,165		15,756
Unrealized gain on securities available for sale	9,263		5,430

Right of use lease asset	18,684		10,063
	97,424		76,676

Net deferred tax asset	$	33,314	$	2,180