Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The provision for income taxes for the years ended December 31 is comprised of the following components:


(In thousands)	2022		2021		2020
Income taxes currently payable	$	35,215	$	50,369	$	65,012
Deferred income taxes	14,933		10,937		(122)
Provision for income taxes	$	50,148	$	61,306	$	64,890

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 as of December 31, 2022 and 2021:


(In thousands)	2022		2021
Deferred tax assets:
Loans acquired	$	5,846	$	4,832
Allowance for credit losses	47,145		48,462
Valuation of foreclosed assets	523		628
Tax NOLs from acquisition	10,962		13,537
Deferred compensation payable	3,867		3,426
Accrued equity and other compensation	8,153		5,776
Acquired securities	7,651		223
Right-of-use lease liability	11,641		11,984
Unrealized loss on AFS securities	177,839		8,164
Allowance for unfunded commitments	10,200		5,442
Other	4,173		7,202
Gross deferred tax assets	288,000		109,676
Deferred tax liabilities:
Goodwill and other intangible amortization	(44,539)		(38,329)
Accumulated depreciation	(24,288)		(26,347)
Right-of-use lease asset	(11,396)		(11,871)
Unrealized gain on swaps	(25,836)		(2,767)
Other	(8,875)		(3,718)
Gross deferred tax liabilities	(114,934)		(83,032)
Net deferred tax asset	$	173,066	$	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 below for the years ended December 31:


(In thousands)	2022		2021		2020
Computed at the statutory rate	$	64,378	$	69,807	$	67,143
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	3,249		4,452		6,402
Discrete items related to share-based compensation	(74)		(17)		375
Tax exempt interest income	(14,484)		(11,510)		(6,726)
Tax exempt earnings on bank owned life insurance	(1,918)		(1,212)		(1,214)
Federal tax credits	(1,708)		(2,260)		(2,177)
Other differences, net	705		2,046		1,087
Actual tax provision	$	50,148	$	61,306	$	64,890