Schedule of the Company's Provision for Income Taxes |
The components of the Company’s provision for income taxes for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, were as follows:
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2018 |
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
65,840 |
|
|
$ |
60,902 |
|
|
$ |
45,464 |
|
State |
|
|
12,066 |
|
|
|
14,426 |
|
|
|
11,434 |
|
Total Current |
|
|
77,906 |
|
|
|
75,328 |
|
|
|
56,898 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
(31,783 |
) |
|
|
(9,630 |
) |
|
|
(2,172 |
) |
State |
|
|
(10,803 |
) |
|
|
(5,785 |
) |
|
|
(4,102 |
) |
Total Deferred |
|
|
(42,586 |
) |
|
|
(15,415 |
) |
|
|
(6,274 |
) |
Provision for Income Taxes |
|
$ |
35,320 |
|
|
$ |
59,913 |
|
|
$ |
50,624 |
|
|
Schedule of Significant Components of the Company's Deferred Tax Liabilities and Assets |
As of December 31, 2020, and December 31, 2019, significant components of the Company’s deferred tax liabilities and assets were as follows:
|
|
December 31, |
|
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
Accelerated Depreciation |
|
$ |
(8,042 |
) |
|
$ |
(4,064 |
) |
Accrued Pension Cost |
|
|
(11,270 |
) |
|
|
(11,270 |
) |
Federal Home Loan Bank Stock |
|
|
(3,416 |
) |
|
|
(3,416 |
) |
Lease Transactions |
|
|
(41,726 |
) |
|
|
(48,487 |
) |
Operating Lease Right-of-Use Assets |
|
|
(26,387 |
) |
|
|
(26,731 |
) |
Energy Tax Credits |
|
|
(674 |
) |
|
|
(2,370 |
) |
Net Unrealized Gains on Investments Securities |
|
|
(18,407 |
) |
|
|
(2,751 |
) |
Investment in Variable Interest Entities |
|
|
(2,725 |
) |
|
|
(3,783 |
) |
Deferred Loan Fees |
|
|
(4,736 |
) |
|
|
(6,498 |
) |
Originated Mortgage Servicing Rights |
|
|
(5,579 |
) |
|
|
(6,840 |
) |
Other |
|
|
(1,124 |
) |
|
|
(1,597 |
) |
Gross Deferred Tax Liabilities |
|
|
(124,086 |
) |
|
|
(117,807 |
) |
Deferred Tax Assets: |
|
|
|
|
|
|
|
|
Allowance for Credit Losses |
|
|
57,840 |
|
|
|
30,951 |
|
Minimum Pension Liability |
|
|
13,430 |
|
|
|
13,980 |
|
Accrued Expenses |
|
|
17,629 |
|
|
|
18,159 |
|
Postretirement Benefit Obligations |
|
|
7,980 |
|
|
|
8,130 |
|
Capital Lease Expenses |
|
|
2,168 |
|
|
|
2,171 |
|
Operating Lease Liabilities |
|
|
28,473 |
|
|
|
28,685 |
|
Restricted Stock |
|
|
3,669 |
|
|
|
4,369 |
|
Deductible State and Local Taxes |
|
|
3,366 |
|
|
|
3,558 |
|
Low Income Housing Investments |
|
|
3,648 |
|
|
|
2,157 |
|
Other |
|
|
6,204 |
|
|
|
6,236 |
|
Gross Deferred Tax Assets Before Valuation Allowance |
|
|
144,407 |
|
|
|
118,396 |
|
Valuation Allowance |
|
|
(3,597 |
) |
|
|
(2,460 |
) |
Gross Deferred Tax Assets After Valuation Allowance |
|
|
140,810 |
|
|
|
115,936 |
|
Net Deferred Tax Assets (Liabilities) |
|
$ |
16,724 |
|
|
$ |
(1,871 |
) |
|
Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate |
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2020, December 31, 2019, and December 31, 2018:
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Statutory Federal Income Tax Rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
|
|
21.00 |
% |
Increase (Decrease) in Income Tax Rate Resulting From: |
|
|
|
|
|
|
|
|
|
|
|
|
State Taxes, Net of Federal Income Tax |
|
|
0.81 |
|
|
|
2.53 |
|
|
|
2.29 |
|
Tax Reserve Adjustments |
|
|
0.07 |
|
|
|
(0.03 |
) |
|
|
— |
|
Low-Income Housing Investments- Federal |
|
|
0.82 |
|
|
|
0.60 |
|
|
|
0.22 |
|
Investment Tax Credits- Federal |
|
|
(1.24 |
) |
|
|
(0.84 |
) |
|
|
(1.04 |
) |
Bank-Owned Life Insurance |
|
|
(0.82 |
) |
|
|
(0.51 |
) |
|
|
(0.55 |
) |
Tax-Exempt Income |
|
|
(0.50 |
) |
|
|
(0.53 |
) |
|
|
(1.29 |
) |
Excess Tax Benefits - Stock Compensation |
|
|
(0.07 |
) |
|
|
(0.22 |
) |
|
|
(0.34 |
) |
Leveraged Lease |
|
|
(0.56 |
) |
|
|
(1.54 |
) |
|
|
(0.83 |
) |
Tax Reform Effects |
|
|
— |
|
|
|
— |
|
|
|
(0.75 |
) |
Other |
|
|
(0.83 |
) |
|
|
0.50 |
|
|
|
0.02 |
|
Effective Tax Rate |
|
|
18.68 |
% |
|
|
20.96 |
% |
|
|
18.73 |
% |
|
Schedule of Reconciliation of the Company's Liability for Unrecognized Tax Benefits |
The following presents a reconciliation of the Company’s liability for UTBs for the years ended December 31, 2020, December 31, 2019, and December 31, 2018:
(dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2018 |
|
Unrecognized Tax Benefits at Beginning of Year |
|
$ |
6,120 |
|
|
$ |
5,541 |
|
|
$ |
5,292 |
|
Gross Increases, Related to Tax Positions Taken in a Prior Period |
|
|
374 |
|
|
|
673 |
|
|
|
157 |
|
Gross Increases, Related to Current Period Tax Positions |
|
|
222 |
|
|
|
715 |
|
|
|
885 |
|
Lapse of Statute of Limitations |
|
|
(1,313 |
) |
|
|
(809 |
) |
|
|
(793 |
) |
Unrecognized Tax Benefits at End of Year |
|
$ |
5,403 |
|
|
$ |
6,120 |
|
|
$ |
5,541 |
|
|