Income Taxes (Tables)

3 Months Ended

Mar. 31, 2024

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


	Three Months Ended March 31,
(In thousands)		2024		2023
Income taxes currently payable		$	5,755	$	10,816
Deferred income taxes		379		(179)
Provision for income taxes		$	6,134	$	10,637

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:


	March 31,		December 31,
(In thousands)	2024		2023
Deferred tax assets:
Loans acquired	$	3,378	$	3,644
Allowance for credit losses	54,042		53,445
Valuation of foreclosed assets	480		480
Tax NOLs from acquisition	9,899		9,643
Deferred compensation payable	3,385		3,355
Accrued equity and other compensation	6,040		8,048
Acquired securities	7,570		7,569
Right-of-use lease liability	17,422		16,501
Unrealized loss on AFS securities	147,642		143,624
Allowance for unfunded commitments	6,148		6,148
Other	8,185		7,627
Gross deferred tax assets	264,191		260,084
Deferred tax liabilities:
Goodwill and other intangible amortization	(40,538)		(41,174)
Accumulated depreciation	(24,748)		(24,632)
Right-of-use lease asset	(17,004)		(16,136)
Unrealized gain on swaps	(29,017)		(25,371)
Other	(11,116)		(10,995)
Gross deferred tax liabilities	(122,423)		(118,308)

Net deferred tax asset	$	141,768	$	141,776

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 March 31,
(In thousands)		2024		2023
Computed at the statutory rate (21%)		$	9,451	$	11,808
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit		(425)		243
Stock-based compensation		454		312
Tax exempt interest income		(3,867)		(3,804)
Tax exempt earnings on BOLI		(840)		(561)
Federal tax credits		(560)		(439)
Other differences, net		1,921		3,078
Actual tax provision		$	6,134	$	10,637