Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income tax expense was as follows:



	2018			2017			2016
Current income tax expense	$	840		$	58,707		$	48,748
Deferred income tax expense (benefit)	52,923			(14,493		)	(11,598		)
Income tax expense, as reported	$	53,763		$	44,214		$	37,150

Effective tax rate	10.6		%	10.8		%	10.9		%

Income Tax Computed by Applying U.S. Federal Statutory Income Tax Rate

A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% in 2018 and 35% in 2017 and 2016 to income before income taxes is presented in the following table.



	2018			2017			2016
Income tax expense computed at the statutory rate	$	106,823		$	142,927		$	119,494
Effect of tax-exempt interest	(49,700		)	(81,034		)	(75,369		)
Tax benefit on dividends paid in our 401k plan	(1,551		)	(2,372		)	(2,558		)
Bank owned life insurance income	(710		)	(1,116		)	(1,260		)
Non-deductible FDIC premiums	1,771			—			—
Non-deductible meals and entertainment	1,193			983			1,065
Net tax benefit from stock-based compensation	(3,865		)	(9,062		)	(5,063		)
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate	(231		)	(4,047		)	—
Correction for prior year tax-exempt interest	—			(2,906		)	—
Other	33			841			841
Income tax expense, as reported	$	53,763		$	44,214		$	37,150

Schedule of Deferred Tax Assets and Liabilities

Year-end deferred taxes are presented in the table below. Deferred taxes are based on the U.S. statutory federal income tax rate of 21%.



	2018			2017
Deferred tax assets:
Allowance for loan losses	$	27,748		$	32,626
Net actuarial loss on defined benefit post-retirement benefit plans	12,626			12,160
Stock-based compensation	10,622			9,904
Bonus accrual	4,586			1,136
Net unrealized loss on securities available for sale and transferred securities	4,283			—
Deferred loan and lease origination fees	2,153			1,280
Alternative minimum tax carryforward	410			47,104
Other	4,351			4,241
Total gross deferred tax assets	66,779			108,451
Deferred tax liabilities:
Premises and equipment	(23,859		)	(20,236		)
Intangible assets	(10,726		)	(8,781		)
Defined benefit post-retirement benefit plans	(9,452		)	(9,012		)
Leases	(1,709		)	(1,646		)
Net unrealized gain on securities available for sale and transferred securities	—			(35,829		)
Other	(1,257		)	(1,229		)
Total gross deferred tax liabilities	(47,003		)	(76,733		)
Net deferred tax asset (liability)	$	19,776		$	31,718