Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Components of the provision for income taxes

Significant components of the provision for income taxes are as follows for the periods presented:


	Year Ended December 31,
	2021		2020		2019
Current
Federal	$	34,629	$	30,193	$	23,786
State	895		3,309		4,264
	35,524		33,502		28,050
Deferred
Federal	9,168		(10,947)		17,331
State	2,243		(2,715)		2,710

	11,411		(13,662)		20,041
	$	46,935	$	19,840	$	48,091

Reconciliation of income taxes computed at the United States federal statutory tax rates

The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:


	Year Ended December 31,
	2021		2020		2019
Tax at U.S. statutory rate	$	46,794	$	21,733	$	45,294
Increase (decrease) in taxes resulting from:
Tax-exempt interest income	(1,669)		(1,431)		(1,205)
BOLI income	(1,547)		(1,182)		(1,283)
Investment tax credits	(988)		(1,494)		(1,863)
Amortization of investment in low-income housing tax credits	817		1,280		1,575
State income tax expense, net of federal benefit	2,479		469		5,509


Other items, net	1,049		465		64
	$	46,935	$	19,840	$	48,091

Significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:


	December 31,
	2021		2020
Deferred tax assets
Allowance for credit losses	$	50,712	$	53,597
Loans	2,855		5,526
Deferred compensation	14,522		13,114
Net unrealized losses on securities	3,545		—
Impairment of assets	392		1,067
Net operating loss carryforwards	1,211		1,857
Investments in partnerships	890		—
Lease liabilities under operating leases	17,106		17,732
Other	3,241		3,539


Total deferred tax assets	94,474		96,432
Deferred tax liabilities

Net unrealized gains on securities	—		8,434
Investment in partnerships	—		793

Fixed assets	5,339		3,285
Mortgage servicing rights	20,779		14,623
Junior subordinated debt	2,130		2,245
Intangibles	3,177		3,882
Lease right-of-use asset	16,209		16,833
Other	1,607		1,672
Total deferred tax liabilities	49,241		51,767
Net deferred tax assets	$	45,233	$	44,665

Summary of operating loss carryforwards

The table below presents the breakout of net operating losses as of the dates presented.


	December 31,
	2021		2020
Net Operating Losses
Federal	$	2,065	$	3,029
State	16,954		26,971

Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below:


	2021		2020		2019
Balance at January 1	$	402	$	667	$	1,919
Additions based on positions related to current period	62		101		158

Reductions based on positions related to prior period	—		(314)		(1,410)

Reductions due to lapse of statute of limitations	(56)		(52)		—
Balance at December 31	$	408	$	402	$	667