Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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		%

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.


	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

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%.


	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)