Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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


(In thousands)	2023		2022		2021
Income taxes currently payable	$	28,006	$	35,215	$	50,369
Deferred income taxes	(2,460)		14,933		10,937
Provision for income taxes	$	25,546	$	50,148	$	61,306

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, 2023 and 2022:


(In thousands)	2023		2022
Deferred tax assets:
Loans acquired	$	3,644	$	5,846
Allowance for credit losses	53,445		47,145
Valuation of foreclosed assets	480		523
Tax NOLs from acquisition	9,643		10,962
Deferred compensation payable	3,355		3,867
Accrued equity and other compensation	8,048		8,153
Acquired securities	7,569		7,651
Right-of-use lease liability	16,501		11,641
Unrealized loss on AFS securities	143,624		177,839
Allowance for unfunded commitments	6,148		10,200
Other	7,627		4,173
Gross deferred tax assets	260,084		288,000
Deferred tax liabilities:
Goodwill and other intangible amortization	(41,174)		(44,539)
Accumulated depreciation	(24,632)		(24,288)
Right-of-use lease asset	(16,136)		(11,396)
Unrealized gain on swaps	(25,371)		(25,836)
Other	(10,995)		(8,875)
Gross deferred tax liabilities	(118,308)		(114,934)
Net deferred tax asset	$	141,776	$	173,066

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)	2023		2022		2021
Computed at the statutory rate	$	42,127	$	64,378	$	69,807
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	(983)		3,249		4,452
Discrete items related to share-based compensation	596		(74)		(17)
Tax exempt interest income	(15,357)		(14,484)		(11,510)
Tax exempt earnings on bank owned life insurance	(2,607)		(1,918)		(1,212)
Federal tax credits	(218)		(1,708)		(2,260)
Other differences, net	1,988		705		2,046
Actual tax provision	$	25,546	$	50,148	$	61,306