Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income tax expense was as follows:


	2023			2022			2021
Current income tax expense	$	129,229		$	94,595		$	38,675
Deferred income tax expense (benefit)	(14,829)			(4,918)			7,784
Income tax expense, as reported	$	114,400		$	89,677		$	46,459

Effective tax rate	16.1		%	13.4		%	9.5		%

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.


	2023		2022		2021
Income tax expense computed at the statutory rate	$	149,598	$	140,454	$	102,803
Effect of tax-exempt interest	(43,114)		(50,602)		(50,740)
Tax benefit on dividends paid in our 401k plan	(2,135)		(1,854)		(1,764)
Net tax benefit from stock-based compensation	(894)		(4,602)		(7,877)
Non-deductible FDIC premiums	5,263		3,277		2,629
Non-deductible compensation	2,591		2,250		1,773
Non-deductible meals and entertainment	1,692		683		625
Tax basis adjustment of premises and equipment	—		—		(1,026)
Other	1,399		71		36
Income tax expense, as reported	$	114,400	$	89,677	$	46,459

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%.


	2023		2022
Deferred tax assets:
Net unrealized loss on securities available for sale and transferred securities	$	291,023	$	349,237
Lease liabilities under operating leases	66,442		67,608
Allowance for credit losses	62,592		60,137
Bonus accrual	9,680		11,204
FDIC deposit insurance special assessment	9,468		—
Stock-based compensation	7,712		6,622
Net actuarial loss on defined benefit post-retirement benefit plans	6,493		9,172
Deferred loan and lease origination fees	4,129		3,675
Other	5,892		6,109
Total gross deferred tax assets	463,431		513,764
Deferred tax liabilities:

Right-of-use assets under operating leases	(58,905)		(60,651)
Premises and equipment	(42,640)		(45,647)
Intangible assets	(18,106)		(17,732)
Defined benefit post-retirement benefit plans	(13,073)		(12,730)
Other	(2,368)		(2,601)
Total gross deferred tax liabilities	(135,092)		(139,361)
Net deferred tax asset (liability)	$	328,339	$	374,403