Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Components of Income Tax Expense Benefit

The provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consists of the following (in thousands):


	For the Year Ended December 31,
	2020		2019		2018
Current
Federal	$	15,731	$	1,991	$	18,030
State	6,617		740		108
Total current	22,348		2,731		18,138
Deferred
Federal	(2,746)		18,846		(4,568)
State	(1,869)		(2,793)		—
Total deferred	(4,615)		16,053		(4,568)
Total provision for income taxes	$	17,733	$	18,784	$	13,570

Schedule of Income Tax Reconciliation

A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands):


	For the Year Ended December 31,
	2020			2019			2018
Income before provision for income taxes	$	81,042		$	107,358		$	85,502
Applicable statutory Federal income tax rate	21.0		%	21.0		%	21.0		%
Computed “expected” Federal income tax expense	$	17,019		$	22,545		$	17,955
Increase (decrease) in Federal income tax expense resulting from
State income taxes, net of Federal benefit	3,751			583			85
Earnings on BOLI	(1,349)			(1,138)			(1,072)
Tax exempt interest	(1,161)			(665)			(615)
Merger related expenses	138			297			322
Stock compensation	(136)			(386)			(758)
Revaluation of state deferred tax asset	—			(2,205)			—
Impact of Tax Cuts and Jobs Act (“Tax Reform”)	—			—			(1,854)
Reclassification of certain tax effect from accumulated other comprehensive income	(204)			(221)			(586)
Other items, net	(325)			(26)			93
Total provision for income taxes	$	17,733		$	18,784		$	13,570

Schedule of Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are presented in the following table (in thousands):


	December 31,
	2020		2019
Deferred tax assets:
Allowance for credit losses on loans and debt securities HTM	$	16,168	$	4,107
Other reserves	2,485		3,061
Incentive compensation	2,919		1,397
Deferred compensation	533		591
Stock plans	2,214		1,270
Unrealized loss on properties available-for-sale	2,435		1,438
Unrealized loss on securities	272		826
Net operating loss carryforwards related to acquisition	33,014		39,519
Deferred fees on PPP loans	517		—
Other, net	195		178

Federal and state alternative minimum tax	3,705		4,746


Total gross deferred tax assets	64,457		57,133
Deferred tax liabilities:

Unrealized gain on equity securities	(4,154)		—
Premises and equipment	(5,871)		(7,340)
Deferred loan and commitment costs, net	(2,968)		(2,379)
Purchase accounting adjustments	(602)		8,475
Investments, discount accretion	(452)		(380)
Undistributed REIT income	—		(4,735)
Other, net	(783)		(707)
Total gross deferred tax liabilities	(14,830)		(7,066)
Net deferred tax assets	$	49,627	$	50,067