INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense

The components of the provision for income taxes for the years ended December 31, 2022, 2021, and 2020 were as follows, in thousands:


	2022		2021		2020
Current:
Federal	$	45,911	$	32,440	$	34,513
State	13,549		11,352		12,450
Total current expense	$	59,460	$	43,792	$	46,963
Deferred:
Federal	$	(3,637)	$	8,938	$	(8,498)
State	(250)		2,605		(2,412)
Total deferred expense (benefit)	(3,887)		11,543		(10,910)
Total income tax expense	$	55,573	$	55,335	$	36,053

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2022 and 2021, were as follows, in thousands:


	2022		2021
Deferred tax assets:
Tax effect of net unrealized loss on securities carried at fair value reflected in stockholders' equity	$	159,763	$	1,715
Tax effect of net unrealized loss on derivatives reflected in stockholders’ equity	210		367
Tax effect of net unrealized loss on securities transferred from carried at fair value to held to maturity reflected in stockholders' equity	45,174		—
Allowance for credit losses	28,732		28,149
Deferred compensation	12,861		11,299

Net operating loss carryforwards	21,844		18,874


Investments in partnerships	2,843		958

Deferred loan fees	—		1,691
Other	5,476		5,673
Total deferred tax assets	276,903		68,726
Valuation allowance for deferred tax assets	(19,001)		(15,120)
Total deferred tax assets after valuation allowance	$	257,902	$	53,606


Deferred tax liabilities:



Premises, furniture and equipment	$	9,227	$	10,502


Purchase accounting	7,954		7,977


Deferred loan costs	6,078		5,164
Other	3,297		5,560
Total deferred tax liabilities	26,556		29,203
Net deferred tax assets	$	231,346	$	24,403

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, 2022, 2021, and 2020, (computed by applying the U.S. federal corporate tax rate of 21% for 2022, 2021, and 2020 income before income taxes) are as follows, in thousands:


	2022			2021			2020
Computed "expected" tax on net income	$	56,228		$	57,804		$	36,538
Increase (decrease) resulting from:
Nontaxable interest income	(5,804)			(5,504)			(4,011)
State income taxes, net of federal tax benefit	10,523			11,026			7,930

Tax credits	(6,613)			(7,613)			(4,521)
Valuation allowance	13			(440)			(374)
Excess tax expense/(benefit) on stock compensation	(113)			(270)			80

Other	1,339			332			411
Income taxes	$	55,573		$	55,335		$	36,053
Effective tax rates	20.8		%	20.1		%	20.7		%