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Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense was as follows:
202020192018
Current income tax expense$36,002 $48,256 $840 
Deferred income tax expense (benefit)(15,832)7,614 52,923 
Income tax expense, as reported$20,170 $55,870 $53,763 
Effective tax rate5.7 %11.2 %10.6 %
A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes is presented in the following table.
202020192018
Income tax expense computed at the statutory rate$73,777 $104,888 $106,823 
Effect of tax-exempt interest(51,624)(49,166)(49,700)
Tax benefit on dividends paid in our 401k plan(1,851)(1,743)(1,551)
Bank owned life insurance income(783)(774)(710)
Non-deductible compensation1,123 1,708 210 
Non-deductible FDIC premiums1,790 1,267 1,771 
Non-deductible meals and entertainment786 1,299 1,193 
Net tax benefit from stock-based compensation(852)(2,447)(3,865)
Asset contribution to a charitable trust(2,556)— — 
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate
— — (231)
Other360 838 (177)
Income tax expense, as reported$20,170 $55,870 $53,763 
There were no unrecognized tax benefits during any of the reported periods. Interest and/or penalties related to income taxes are reported as a component of income tax expense. Such amounts were not significant during the reported periods.
Year-end deferred taxes are presented in the table below. Deferred taxes are based on the U.S. statutory federal income tax rate of 21%.
20202019
Deferred tax assets:
Lease liabilities under operating leases$67,839 $67,975 
Allowance for credit losses64,573 27,860 
Net actuarial loss on defined benefit post-retirement benefit plans13,512 12,210 
Stock-based compensation10,033 11,211 
Bonus accrual3,961 5,055 
Deferred loan and lease origination fees10,252 2,254 
Other3,834 2,058 
Total gross deferred tax assets174,004 128,623 
Deferred tax liabilities:
Net unrealized gain on securities available for sale and transferred securities
(149,870)(83,281)
Right-of-use assets under operating leases(61,963)(63,463)
Premises and equipment(49,602)(29,730)
Intangible assets
(14,596)(12,642)
Defined benefit post-retirement benefit plans
(10,081)(9,419)
Partnership interests
(2,913)(2,894)
Leases(1,090)(1,572)
Other(1,387)(1,440)
Total gross deferred tax liabilities(291,502)(204,441)
Net deferred tax asset (liability)$(117,498)$(75,818)
No valuation allowance for deferred tax assets was recorded at December 31, 2020 and 2019 as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. There were no unrecognized tax benefits during any of the reported periods.
We file income tax returns in the U.S. federal jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2017.