v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense was as follows:
202220212020
Current income tax expense$94,595 $38,675 $36,002 
Deferred income tax expense (benefit)(4,918)7,784 (15,832)
Income tax expense, as reported$89,677 $46,459 $20,170 
Effective tax rate13.4 %9.5 %5.7 %
A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes is presented in the following table.
202220212020
Income tax expense computed at the statutory rate$140,454 $102,803 $73,777 
Effect of tax-exempt interest(50,602)(50,740)(51,624)
Net tax benefit from stock-based compensation(4,602)(7,877)(852)
Tax benefit on dividends paid in our 401k plan(1,854)(1,764)(1,851)
Bank owned life insurance income(440)(517)(783)
Non-deductible FDIC premiums3,277 2,629 1,790 
Non-deductible compensation2,250 1,773 1,123 
Non-deductible meals and entertainment683 625 786 
Asset contribution to a charitable trust— — (2,556)
Tax basis adjustment of premises and equipment— (1,026)— 
Other511 553 360 
Income tax expense, as reported$89,677 $46,459 $20,170 
There were no unrecognized tax benefits during any of the reported periods. Interest and/or penalties related to income taxes are reported as a component of income tax expense. Such amounts were not significant during the reported periods.
Year-end deferred taxes are presented in the table below. Deferred taxes are based on the U.S. statutory federal income tax rate of 21%.
20222021
Deferred tax assets:
Lease liabilities under operating leases$67,608 $65,815 
Net unrealized loss on securities available for sale and transferred securities349,237 — 
Allowance for credit losses60,137 62,819 
Net actuarial loss on defined benefit post-retirement benefit plans9,172 8,743 
Stock-based compensation6,622 6,989 
Bonus accrual11,204 7,506 
Deferred loan and lease origination fees3,675 3,118 
Other6,109 3,834 
Total gross deferred tax assets513,764 158,824 
Deferred tax liabilities:
Net unrealized gain on securities available for sale and transferred securities
— (101,067)
Right-of-use assets under operating leases(60,651)(59,415)
Premises and equipment(45,647)(49,645)
Intangible assets
(17,732)(16,595)
Defined benefit post-retirement benefit plans
(12,730)(11,027)
Other(2,601)(2,323)
Total gross deferred tax liabilities(139,361)(240,072)
Net deferred tax asset (liability)$374,403 $(81,248)
No valuation allowance for deferred tax assets was recorded at December 31, 2022 and 2021 as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. There were no unrecognized tax benefits during any of the reported periods.
We file income tax returns in the U.S. federal jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2019.