Income Taxes (Tables)

9 Months Ended

Sep. 30, 2023

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)	2023		2022		2023		2022
Income taxes currently payable	$	4,706	$	14,952	$	25,817	$	35,412
Deferred income taxes	4,537		2,007		4,202		2,924
Provision for income taxes	$	9,243	$	16,959	$	30,019	$	38,336

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)	2023		2022
Deferred tax assets:
Loans acquired	$	4,162	$	5,846
Allowance for credit losses	47,042		47,145
Valuation of foreclosed assets	523		523
Tax NOLs from acquisition	9,688		10,962
Deferred compensation payable	3,569		3,867
Accrued equity and other compensation	8,065		8,153
Acquired securities	7,522		7,651
Right-of-use lease liability	15,496		11,641
Unrealized loss on AFS securities	193,398		177,839
Allowance for unfunded commitments	6,235		10,200
Other	5,886		4,173
Gross deferred tax assets	301,586		288,000
Deferred tax liabilities:
Goodwill and other intangible amortization	(42,438)		(44,539)
Accumulated depreciation	(23,415)		(24,288)
Right-of-use lease asset	(15,170)		(11,396)
Unrealized gain on swaps	(35,230)		(25,836)
Other	(10,304)		(8,875)
Gross deferred tax liabilities	(126,557)		(114,934)

Net deferred tax asset	$	175,029	$	173,066

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)	2023		2022		2023		2022
Computed at the statutory rate (21%)	$	11,862	$	20,488	$	38,045	$	44,412
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	(40)		1,774		657		2,339
Stock-based compensation	28		16		469		(89)
Tax exempt interest income	(3,848)		(3,682)		(11,523)		(10,704)
Tax exempt earnings on BOLI	(636)		(509)		(1,973)		(1,399)
Federal tax credits	(567)		(301)		(1,501)		(1,838)
Other differences, net	2,444		(827)		5,845		5,615
Actual tax provision	$	9,243	$	16,959	$	30,019	$	38,336