Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was as follows:

	2021			2020			2019
Current income tax expense	$	38,675		$	36,002		$	48,256
Deferred income tax expense (benefit)	7,784			(15,832)			7,614
Income tax expense, as reported	$	46,459		$	20,170		$	55,870
Effective tax rate	9.5		%	5.7		%	11.2		%

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.

	2021		2020		2019
Income tax expense computed at the statutory rate	$	102,803	$	73,777	$	104,888
Effect of tax-exempt interest	(50,740)		(51,624)		(49,166)
Tax benefit on dividends paid in our 401k plan	(1,764)		(1,851)		(1,743)
Bank owned life insurance income	(517)		(783)		(774)
Non-deductible FDIC premiums	2,629		1,790		1,267
Non-deductible compensation	1,773		1,123		1,708
Non-deductible meals and entertainment	625		786		1,299
Net tax benefit from stock-based compensation	(7,877)		(852)		(2,447)
Asset contribution to a charitable trust	—		(2,556)		—
Tax basis adjustment of premises and equipment	(1,026)		—		—
Other	553		360		838
Income tax expense, as reported	$	46,459	$	20,170	$	55,870

There were no unrecognized tax benefits during any of the reported periods. Interest and/or penalties related to income taxes are reported as a component of income tax expense. Such amounts were not significant during the reported periods.

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%.

	2021		2020
Deferred tax assets:
Lease liabilities under operating leases	$	65,815	$	67,839
Allowance for credit losses	62,819		64,573
Net actuarial loss on defined benefit post-retirement benefit plans	8,743		13,512
Stock-based compensation	6,989		10,033
Bonus accrual	7,506		3,961
Deferred loan and lease origination fees	3,118		10,252
Other	3,834		3,834
Total gross deferred tax assets	158,824		174,004
Deferred tax liabilities:
Net unrealized gain on securities available for sale and transferred securities	(101,067)		(149,870)
Right-of-use assets under operating leases	(59,415)		(61,963)
Premises and equipment	(49,645)		(49,602)
Intangible assets	(16,595)		(14,596)
Defined benefit post-retirement benefit plans	(11,027)		(10,081)
Partnership interests	—		(2,913)
Leases	(712)		(1,090)
Other	(1,611)		(1,387)
Total gross deferred tax liabilities	(240,072)		(291,502)
Net deferred tax asset (liability)	$	(81,248)	$	(117,498)

No valuation allowance for deferred tax assets was recorded at December 31, 2021 and 2020 as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. There were no unrecognized tax benefits during any of the reported periods.

We file income tax returns in the U.S. federal jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2018.