Components of Consolidated Income Tax Expense |
The components of consolidated income tax expense are as follows (in thousands): | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2023 | | 2022 | | 2021 | Current tax expense | | | | | | Federal | $ | 26,133 | | | $ | 34,155 | | | $ | 28,763 | | State | 19,781 | | | 22,355 | | | 18,221 | | | $ | 45,914 | | | 56,510 | | | 46,984 | | Deferred tax expense | | | | | | Federal | (1,330) | | | (5,224) | | | (872) | | State | (1,069) | | | (2,798) | | | (64) | | | (2,399) | | | (8,022) | | | (936) | | Total tax expense | $ | 43,515 | | | $ | 48,488 | | | $ | 46,048 | |
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Schedule of Components of Investments in Qualified Affordable Housing Projects |
The Company recognized, as components of tax expense, tax credits and other tax benefits, and amortization expense relating to our investments in Qualified Affordable Housing Projects as follows for the periods indicated (in thousands): | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2023 | | 2022 | | 2021 | Tax credits and other tax benefits – decrease in tax expense | $ | (10,857) | | | $ | (6,370) | | | $ | (4,224) | | Amortization – increase in tax expense | $ | 9,092 | | | $ | 6,178 | | | $ | 3,604 | |
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Company's Net Deferred Tax Asset Recorded in Other Assets |
The temporary differences, tax effected, which give rise to the Company’s net deferred tax asset recorded in other assets are as follows for the years indicated (in thousands): | | | | | | | | | | | | | December 31, | | 2023 | | 2022 | Deferred tax assets: | | | | Allowance for losses and reserve for unfunded commitments | $ | 37,656 | | | $ | 32,519 | | Deferred compensation | 1,534 | | | 1,696 | | | | | | Other accrued expenses | 3,899 | | | 2,720 | | Additional unfunded status of the supplemental retirement plans | 15,434 | | | 16,036 | | Operating lease liability | 8,355 | | | 8,575 | | State taxes | 3,346 | | | 3,649 | | Share based compensation | 1,050 | | | 1,132 | | Nonaccrual interest | 706 | | | 643 | | Acquisition cost basis | 12,046 | | | 14,640 | | Unrealized loss on securities | 68,535 | | | 85,897 | | Tax credits | 852 | | | 852 | | Net operating loss carryforwards | 953 | | | 2,098 | | Other | 190 | | | 120 | | Total deferred tax assets | 154,556 | | | 170,577 | | Deferred tax liabilities: | | | | Securities income | (777) | | | (777) | | Depreciation | (8,364) | | | (8,270) | | Right of use asset | (7,726) | | | (7,941) | | Funded pension liability | (3,999) | | | (4,110) | | Securities accretion | (2,265) | | | (1,265) | | Mortgage servicing rights valuation | (1,946) | | | (1,976) | | | | | | Core deposit intangible | (2,814) | | | (4,778) | | Junior subordinated debt | (1,171) | | | (1,293) | | Prepaid expenses and other | (1,170) | | | (991) | | Total deferred tax liability | (30,232) | | | (31,401) | | Net deferred tax asset | $ | 124,324 | | | $ | 139,176 | |
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