Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income tax expense was as follows:


	2022			2021			2020
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 rate	13.4		%	9.5		%	5.7		%

Income Tax Computed by Applying U.S. Federal Statutory Income Tax Rate

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.


	2022		2021		2020
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 premiums	3,277		2,629		1,790
Non-deductible compensation	2,250		1,773		1,123
Non-deductible meals and entertainment	683		625		786
Asset contribution to a charitable trust	—		—		(2,556)
Tax basis adjustment of premises and equipment	—		(1,026)		—
Other	511		553		360
Income tax expense, as reported	$	89,677	$	46,459	$	20,170

Schedule of Deferred Tax Assets and Liabilities

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%.


	2022		2021
Deferred tax assets:
Lease liabilities under operating leases	$	67,608	$	65,815
Net unrealized loss on securities available for sale and transferred securities	349,237		—
Allowance for credit losses	60,137		62,819
Net actuarial loss on defined benefit post-retirement benefit plans	9,172		8,743
Stock-based compensation	6,622		6,989
Bonus accrual	11,204		7,506
Deferred loan and lease origination fees	3,675		3,118
Other	6,109		3,834
Total gross deferred tax assets	513,764		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)