Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

The provision for income taxes is comprised of the following components for the periods indicated below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Income taxes currently payable	$	21,500	$	19,329	$	46,566	$	51,000
Deferred income taxes	(2,730)		(1,696)		3,585		2,920
Provision for income taxes	$	18,770	$	17,633	$	50,151	$	53,920

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:


	September 30,		December 31,
(In thousands)	2021		2020
Deferred tax assets:
Loans acquired	$	5,882	$	10,100
Allowance for credit losses	47,652		58,028
Valuation of foreclosed assets	1,631		1,673
Tax NOLs from acquisition	13,698		16,028
Deferred compensation payable	3,342		3,060
Accrued equity and other compensation	6,091		5,905
Acquired securities	431		587
Right-of-use lease liability	9,992		7,835
Unrealized loss on AFS securities	3,631		—
Allowance for unfunded commitments	5,444		5,583
Other	8,255		7,600
Gross deferred tax assets	106,049		116,399
Deferred tax liabilities:
Goodwill and other intangible amortization	(36,584)		(38,882)
Accumulated depreciation	(24,510)		(34,667)
Right-of-use lease asset	(9,893)		(7,813)
Unrealized gain on AFS securities	—		(17,521)
Other	(4,001)		(4,021)
Gross deferred tax liabilities	(74,988)		(102,904)

Net deferred tax asset	$	31,061	$	13,495

Reconciliation of Income Tax Expense

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown for the periods indicated below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Computed at the statutory rate (21%)	$	20,859	$	17,539	$	57,336	$	53,719
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	1,477		1,143		4,855		5,502
Stock-based compensation	(22)		74		15		143
Tax exempt interest income	(2,973)		(1,752)		(8,224)		(4,594)
Tax exempt earnings on BOLI	(435)		(308)		(995)		(839)
Federal tax credits	(491)		(434)		(1,670)		(1,252)
Other differences, net	355		1,371		(1,166)		1,241
Actual tax provision	$	18,770	$	17,633	$	50,151	$	53,920