Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income tax expense is as follows for the years indicated (in thousands):


	Year Ended December 31,
	2021		2020		2019
Current	$	57,175	$	42,688	$	38,082
Deferred	20,787		2,668		14,909


Total income tax expense	$	77,962	$	45,356	$	52,991

Schedule of differences between the provision for income taxes and statutory federal income tax rate

The differences between the provision for income taxes and the amount computed by applying the statutory federal income tax rate of 21% in 2021, 2020 and 2019 to income before income taxes are as follows for the years indicated (in thousands):


	Year Ended December 31,
	2021		2020		2019
Income tax expense on pretax income at statutory rates	$	73,030	$	43,983	$	50,130
Add (deduct):
State taxes, net of federal benefit	9,188		5,928		7,168
BOLI earnings	(745)		(1,052)		(1,127)
Adjustment to reserve for uncertain tax positions	153		(1,212)		84
Tax-exempt interest revenue	(2,520)		(2,169)		(1,827)
Equity compensation	(891)		(174)		(375)
Transaction costs	117		217		16
Tax credit investments	(598)		(930)		(464)




Other	228		765		(614)
Total income tax expense	$	77,962	$	45,356	$	52,991

Schedule of summarizes the sources and expected tax consequences of future taxable deductions (revenue)

The following summarizes the sources and expected tax consequences of future taxable deductions (revenue) which comprise the net DTA as of the dates indicated (in thousands):


	December 31,
	2021		2020
DTAs:
ACL	$	24,349	$	33,213
Net operating loss carryforwards	16,656		22,277
Deferred compensation	11,011		10,012
Loan purchase accounting adjustments	4,227		8,567

Nonqualified share based compensation	1,374		1,833
Accrued expenses	7,936		6,865

Unamortized pension actuarial losses and prior service cost	1,442		1,981
Unrealized losses on AFS securities	5,808		—


Deferred gains on SBA/USDA loan sales	2,217		2,060
Lease liability	7,501		8,055
Other	1,107		2,062
Total DTAs	83,628		96,925
DTLs:
Unrealized gains on AFS securities	—		17,439
Unrealized gains on cash flow hedges	1,189		54
Acquired intangible assets	2,412		2,576
Premises and equipment	5,179		4,241
Loan origination costs	6,466		4,857
True tax leases	5,984		7,846
Servicing assets	6,779		4,816
Derivatives	1,309		2,250
ROU asset	7,102		7,642
Securities purchase accounting adjustments	2,644		3,146
Uncertain tax positions	1,945		1,813
Other	386		230
Total DTLs	41,395		56,910
Less valuation allowance	911		1,604
Net DTA	$	41,322	$	38,411

Schedule of reconciliation of the beginning and ending unrecognized tax benefit related to uncertain tax positions

A reconciliation of the beginning and ending unrecognized tax benefit related to uncertain tax positions is as follows for the years indicated (in thousands):


	2021		2020		2019
Balance at beginning of year	$	2,163	$	3,370	$	3,264
Additions based on tax positions related to the current year	634		421		481
Decreases resulting from a lapse in the applicable statute of limitations	(441)		(1,628)		(375)

Balance at end of year	$	2,356	$	2,163	$	3,370