Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income tax expense was as follows:



	2019			2018			2017
Current income tax expense	$	48,256		$	840		$	58,707
Deferred income tax expense (benefit)	7,614			52,923			(14,493		)
Income tax expense, as reported	$	55,870		$	53,763		$	44,214

Effective tax rate	11.2		%	10.6		%	10.8		%

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 2019 and 2018 and 35% in 2017 to income before income taxes is presented in the following table.



	2019			2018			2017
Income tax expense computed at the statutory rate	$	104,888		$	106,823		$	142,927
Effect of tax-exempt interest	(49,166		)	(49,700		)	(81,034		)
Tax benefit on dividends paid in our 401k plan	(1,743		)	(1,551		)	(2,372		)
Bank owned life insurance income	(774		)	(710		)	(1,116		)
Non-deductible compensation	1,708			210			158
Non-deductible FDIC premiums	1,267			1,771			—
Non-deductible meals and entertainment	1,299			1,193			983
Net tax benefit from stock-based compensation	(2,447		)	(3,865		)	(9,062		)
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	838			(177		)	683
Income tax expense, as reported	$	55,870		$	53,763		$	44,214

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%.



	2019			2018
Deferred tax assets:
Lease liabilities under operating leases	$	67,975		$	—
Allowance for loan losses	27,755			27,748
Net actuarial loss on defined benefit post-retirement benefit plans	12,210			12,626
Stock-based compensation	11,211			10,622
Bonus accrual	5,055			4,586
Net unrealized loss on securities available for sale and transferred securities	—			4,283
Deferred loan and lease origination fees	2,254			2,153
Other	2,163			4,761
Total gross deferred tax assets	128,623			66,779
Deferred tax liabilities:
Net unrealized gain on securities available for sale and transferred securities	(83,281		)	—
Right-of-use assets under operating leases	(63,463		)	—
Premises and equipment	(29,730		)	(23,859		)
Intangible assets	(12,642		)	(10,726		)
Defined benefit post-retirement benefit plans	(9,419		)	(9,452		)
Partnership interests	(2,894		)	—
Leases	(1,572		)	(1,709		)
Other	(1,440		)	(1,257		)
Total gross deferred tax liabilities	(204,441		)	(47,003		)
Net deferred tax asset (liability)	$	(75,818	)	$	19,776