Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

4. INCOME TAXES

Our effective tax rate for the three months ended March 31, 2022 was 18.1 percent, compared to 18.7 percent for the same period in 2021. Effective rates are dependent upon components of pretax earnings and the related tax effects. The effective tax rate was lower for 2022 as lower pretax income increased the percentage impact of tax-favored adjustments.

Income tax expense attributable to income from operations for the three-month periods ended March 31, 2022 and 2021 differed from the amounts computed by applying the U.S. federal tax rate of 21 percent to pretax income by the items detailed in the below table. In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line.

	For the Three Months Ended March 31,
	2022							2021
(in thousands)	Amount			%				Amount			%
Provision for income taxes at the statutory rate of 21%	$	12,290			21.0		%	$	18,865			21.0		%
Increase (reduction) in taxes resulting from:
Excess tax benefit on share-based compensation		(1,414	)		(2.4	)	%		(1,924	)		(2.1	)	%
Tax exempt interest income		(281	)		(0.5	)	%		(319	)		(0.4	)	%
Dividends received deduction		(271	)		(0.5	)	%		(236	)		(0.3	)	%
Investment tax credit		(1,182	)		(2.0	)	%		(801	)		(0.9	)	%
ESOP dividends paid deduction		(130	)		(0.2	)	%		(130	)		(0.1	)	%
Nondeductible expenses		316			0.5		%		411			0.5		%
Other items, net		1,274			2.2		%		956			1.0		%
Total tax expense	$	10,602			18.1		%	$	16,822			18.7		%