Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

The provision for income taxes is comprised of the following components for the periods indicated below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Income taxes currently payable	$	14,952	$	21,500	$	35,412	$	46,566
Deferred income taxes	2,007		(2,730)		2,924		3,585
Provision for income taxes	$	16,959	$	18,770	$	38,336	$	50,151

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:


	September 30,		December 31,
(In thousands)	2022		2021
Deferred tax assets:
Loans acquired	$	7,459	$	4,832
Allowance for credit losses	47,048		48,462
Valuation of foreclosed assets	628		628
Tax NOLs from acquisition	12,423		13,537
Deferred compensation payable	3,795		3,426
Accrued equity and other compensation	5,738		5,776
Acquired securities	19,749		223
Right-of-use lease liability	12,194		11,984
Unrealized loss on AFS securities	204,415		8,164
Allowance for unfunded commitments	10,188		5,442
Other	5,905		7,202
Gross deferred tax assets	329,542		109,676
Deferred tax liabilities:
Goodwill and other intangible amortization	(45,070)		(38,329)
Accumulated depreciation	(24,741)		(26,347)
Right-of-use lease asset	(11,981)		(11,871)
Unrealized gain on swaps	(29,279)		(2,767)
Other	(4,233)		(3,718)
Gross deferred tax liabilities	(115,304)		(83,032)

Net deferred tax asset	$	214,238	$	26,644

Reconciliation of Income Tax Expense

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown for the periods indicated below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Computed at the statutory rate (21%)	$	20,488	$	20,859	$	44,412	$	57,336
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	1,774		1,477		2,339		4,855
Stock-based compensation	16		(22)		(89)		15
Tax exempt interest income	(3,682)		(2,973)		(10,704)		(8,224)
Tax exempt earnings on BOLI	(509)		(435)		(1,399)		(995)
Federal tax credits	(301)		(491)		(1,838)		(1,670)
Other differences, net	(827)		355		5,615		(1,166)
Actual tax provision	$	16,959	$	18,770	$	38,336	$	50,151