INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of the provision for income taxes for the years ended December 31, 2020, 2019, and 2018 were as follows, in thousands:

	2020		2019		2018
Current:
Federal	$	34,513	$	24,106	$	16,769
State	12,450		11,298		8,686
Total current expense	$	46,963	$	35,404	$	25,455
Deferred:
Federal	$	(8,498)	$	760	$	2,615
State	(2,412)		(1,174)		145
Total deferred expense (benefit)	(10,910)		(414)		2,760
Total income tax expense	$	36,053	$	34,990	$	28,215

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2020 and 2019, were as follows, in thousands:

	2020		2019
Deferred tax assets:
Tax effect of net unrealized loss on derivatives reflected in stockholders’ equity	$	1,130	$	563
Allowance for credit losses	33,393		17,686
Deferred compensation	9,623		8,071
Net operating loss carryforwards	17,585		18,459
Tax credit projects	4,746		4,252
Deferred loan fees	3,496		—
Other	5,563		4,754
Total deferred tax assets	75,536		53,785
Valuation allowance for deferred tax assets	(12,828)		(12,379)
Total deferred tax assets after valuation allowance	$	62,708	$	41,406

Deferred tax liabilities:
Tax effect of net unrealized gain on securities carried at fair value reflected in stockholders’ equity	$	26,858	$	279
Securities	4,914		4,240
Premises, furniture and equipment	8,311		6,232
Purchase accounting	5,326		7,824
Prepaid expenses	2,675		2,176
Deferred loan costs	2,597		3,342
Other	3,905		3,713
Total deferred tax liabilities	$	54,586	$	27,806
Net deferred tax assets	$	8,122	$	13,600

Schedule of Effective Income Tax Rate Reconciliation

The actual income tax expense from continuing operations differs from the expected amounts for the years ended December 31, 2020, 2019, and 2018, (computed by applying the U.S. federal corporate tax rate of 21% for 2020, 2019, and 2018 income before income taxes) are as follows, in thousands:

	2020			2019			2018
Computed "expected" tax on net income	$	36,538		$	38,665		$	30,495
Increase (decrease) resulting from:
Nontaxable interest income	(4,011)			(3,281)			(4,423)
State income taxes, net of federal tax benefit	7,930			8,509			6,976
Tax credits	(4,521)			(6,860)			(4,085)
Valuation allowance	(374)			(1,648)			23
Excess tax expense/(benefit) on stock compensation	80			(229)			(657)
Other	411			(166)			(114)
Income taxes	$	36,053		$	34,990		$	28,215
Effective tax rates	20.7		%	19.0		%	19.4		%