Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
|
Components of Income Tax Expense |
The components of income tax expense are as follows:
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
|
(Dollars in thousands) |
|
Current |
|
$ |
91,314 |
|
|
$ |
113,073 |
|
|
$ |
74,346 |
|
Deferred |
|
|
24,816 |
|
|
|
(26,417 |
) |
|
|
6,877 |
|
Total |
|
$ |
116,130 |
|
|
$ |
86,656 |
|
|
$ |
81,223 |
|
|
Schedule of Income Tax Reconciliation |
The provision for federal income taxes differs from the amount computed by applying the federal income tax statutory rate of 21% for 2020, 2019 and 2018 to income before income taxes as follows:
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
|
(Dollars in thousands) |
|
Taxes calculated at statutory rate |
|
$ |
135,457 |
|
|
$ |
88,055 |
|
|
$ |
84,637 |
|
Increase (decrease) resulting from: |
|
|
|
|
|
|
|
|
|
|
|
|
Excess FMV on restricted stock vesting |
|
|
52 |
|
|
|
(126 |
) |
|
|
(418 |
) |
Certain compensation >$1 million |
|
|
615 |
|
|
|
628 |
|
|
|
651 |
|
Non deductible compensation |
|
|
873 |
|
|
|
357 |
|
|
|
— |
|
Tax-exempt interest |
|
|
(2,455 |
) |
|
|
(2,851 |
) |
|
|
(3,504 |
) |
Qualified School Construction Bond credit |
|
|
(1,453 |
) |
|
|
(1,534 |
) |
|
|
(1,608 |
) |
Non taxable death benefits |
|
|
(286 |
) |
|
|
(464 |
) |
|
|
(56 |
) |
BOLI income |
|
|
(1,208 |
) |
|
|
(1,140 |
) |
|
|
(1,110 |
) |
State tax, net |
|
|
2,230 |
|
|
|
1,629 |
|
|
|
1,482 |
|
Other, net |
|
|
2,450 |
|
|
|
2,102 |
|
|
|
1,149 |
|
Net operating loss carryback |
|
|
(20,145 |
) |
|
|
— |
|
|
|
— |
|
Total |
|
$ |
116,130 |
|
|
$ |
86,656 |
|
|
$ |
81,223 |
|
|
Schedule of Deferred Tax Assets and Liabilities |
Year-end deferred taxes are presented in the table below. As a result of the Tax Cuts and Jobs Act enacted on December 22, 2017, deferred taxes as of December 31, 2020 and 2019 are based on the U.S. statutory federal corporate income tax rate of 21%.
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
(Dollars in thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Loan purchase discounts |
|
$ |
11,298 |
|
|
$ |
58,264 |
|
Allowance for credit losses |
|
|
66,374 |
|
|
|
18,206 |
|
Accrued liabilities |
|
|
3,759 |
|
|
|
4,193 |
|
Restricted stock |
|
|
6,964 |
|
|
|
5,090 |
|
CECL unfunded loans |
|
|
6,289 |
|
|
|
— |
|
Deferred compensation |
|
|
2,317 |
|
|
|
3,042 |
|
Certificates of Deposit |
|
|
360 |
|
|
|
1,640 |
|
Net operating losses |
|
|
2 |
|
|
|
44 |
|
Other |
|
|
13 |
|
|
|
1,412 |
|
Total deferred tax assets |
|
|
97,376 |
|
|
|
91,891 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Goodwill and core deposit intangibles |
|
|
(37,057 |
) |
|
|
(38,226 |
) |
Bank premises and equipment |
|
|
(9,968 |
) |
|
|
(8,890 |
) |
Securities |
|
|
(36 |
) |
|
|
(158 |
) |
Unrealized gain on available for sale securities |
|
|
(204 |
) |
|
|
(160 |
) |
Prepaid expenses |
|
|
(1,216 |
) |
|
|
(1,555 |
) |
Deferred loan fees and costs |
|
|
(3,211 |
) |
|
|
(5,958 |
) |
Investments in partnerships |
|
|
(1,381 |
) |
|
|
(90 |
) |
Total deferred tax liabilities |
|
|
(53,073 |
) |
|
|
(55,037 |
) |
Net deferred tax assets |
|
$ |
44,303 |
|
|
$ |
36,854 |
|
|