Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income tax expense was as follows:


	2020			2019			2018
Current income tax expense	$	36,002		$	48,256		$	840
Deferred income tax expense (benefit)	(15,832)			7,614			52,923
Income tax expense, as reported	$	20,170		$	55,870		$	53,763

Effective tax rate	5.7		%	11.2		%	10.6		%

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% to income before income taxes is presented in the following table.


	2020		2019		2018
Income tax expense computed at the statutory rate	$	73,777	$	104,888	$	106,823
Effect of tax-exempt interest	(51,624)		(49,166)		(49,700)
Tax benefit on dividends paid in our 401k plan	(1,851)		(1,743)		(1,551)
Bank owned life insurance income	(783)		(774)		(710)
Non-deductible compensation	1,123		1,708		210
Non-deductible FDIC premiums	1,790		1,267		1,771
Non-deductible meals and entertainment	786		1,299		1,193
Net tax benefit from stock-based compensation	(852)		(2,447)		(3,865)
Asset contribution to a charitable trust	(2,556)		—		—
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate	—		—		(231)
Other	360		838		(177)
Income tax expense, as reported	$	20,170	$	55,870	$	53,763

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%.


	2020		2019
Deferred tax assets:
Lease liabilities under operating leases	$	67,839	$	67,975
Allowance for credit losses	64,573		27,860
Net actuarial loss on defined benefit post-retirement benefit plans	13,512		12,210
Stock-based compensation	10,033		11,211
Bonus accrual	3,961		5,055

Deferred loan and lease origination fees	10,252		2,254
Other	3,834		2,058
Total gross deferred tax assets	174,004		128,623
Deferred tax liabilities:
Net unrealized gain on securities available for sale and transferred securities	(149,870)		(83,281)
Right-of-use assets under operating leases	(61,963)		(63,463)
Premises and equipment	(49,602)		(29,730)
Intangible assets	(14,596)		(12,642)
Defined benefit post-retirement benefit plans	(10,081)		(9,419)
Partnership interests	(2,913)		(2,894)
Leases	(1,090)		(1,572)
Other	(1,387)		(1,440)
Total gross deferred tax liabilities	(291,502)		(204,441)
Net deferred tax asset (liability)	$	(117,498)	$	(75,818)