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Income Tax | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax The components of income tax expense are as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
|  | (in thousands)
Current expense: |  |  |  |  |  |
Federal |  | $ | 44,094 |  |  | $ | 40,471 |  |  | $ | 33,400 |
State |  | 7,822 |  |  | 6,359 |  |  | 5,446 |
Total current tax expense |  | $ | 51,916 |  |  | $ | 46,830 |  |  | $ | 38,846 |
Deferred tax expense (benefit): |  |  |  |  |  |
Federal |  | $ | (12,078) |  |  | $ | 60 |  |  | $ | (291) |
State |  | (1,690) |  |  | 270 |  |  | 399 |
Total deferred tax expense (benefit) |  | (13,768) |  |  | 330 |  |  | 108 |
Total |  | $ | 38,148 |  |  | $ | 47,160 |  |  | $ | 38,954 |
Significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | December 31,
|  | 2020 |  | 2019
|  | (in thousands)
Deferred tax assets: |  |  |  |
ACL |  | $ | 36,906 |  |  | $ | 20,489 |
Lease liability |  | 15,823 |  |  | 14,776 |
Deferred compensation |  | 11,658 |  |  | 11,079 |
Stock options and restricted stock |  | 2,599 |  |  | 2,016 |
OREO |  | 16 |  |  | — |
Nonaccrual interest |  | 102 |  |  | 112 |
Net operating losses and credit carryforwards |  | 3,304 |  |  | 4,136 |
Other |  | 278 |  |  | 245 |
Total deferred tax assets |  | 70,686 |  |  | 52,853 |
Deferred tax liabilities: |  |  |  |
Asset purchase tax basis difference |  | (6,590) |  |  | (7,888) |
Right of use asset |  | (14,501) |  |  | (13,415) |
FHLB stock dividends |  | (789) |  |  | (789) |
Deferred loan fees |  | (5,695) |  |  | (4,097) |
Unrealized gain on investment securities |  | (49,837) |  |  | (10,091) |
Unrealized gain on equity securities |  | (3,147) |  |  | — |
Purchase accounting |  | (7,526) |  |  | (8,946) |
Depreciation |  | (2,427) |  |  | (3,152) |
Cash flow hedge |  | (7,591) |  |  | (3,452) |
Other |  | (112) |  |  | (100) |
Total deferred tax liabilities |  | (98,215) |  |  | (51,930) |
Net deferred tax asset (liability) |  | $ | (27,529) |  |  | $ | 923 |
A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
|  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
|  | (dollars in thousands)
Income tax based on statutory rate |  | $ | 40,402 |  |  | 21 | % |  | $ | 50,738 |  |  | 21 | % |  | $ | 44,485 |  |  | 21 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Tax exempt instruments |  | (5,987) |  |  | (3) | % |  | (6,771) |  |  | (3) | % |  | (6,423) |  |  | (3) | %
Bank owned life insurance |  | (1,348) |  |  | (1) | % |  | (1,963) |  |  | (1) | % |  | (1,261) |  |  | (1) | %
State income tax, net of federal benefit |  | 4,844 |  |  | 3 | % |  | 5,134 |  |  | 2 | % |  | 4,931 |  |  | 2 | %
Other, net |  | 237 |  |  | — | % |  | 22 |  |  | 1 | % |  | (2,778) |  |  | (1) | %
Income tax provision |  | $ | 38,148 |  |  | 20 | % |  | $ | 47,160 |  |  | 20 | % |  | $ | 38,954 |  |  | 18 | %
As of December 31, 2020 and 2019, we had no unrecognized tax benefits. Our policy is to recognize interest and penalties on unrecognized tax benefits in “Provision for income taxes” in the Consolidated Statements of Income. There were no amounts related to interest and penalties recognized for the years ended December 31, 2020 and 2019. As a result of past acquisitions, the Company has net operating loss carryforwards in the federal, Idaho and Oregon jurisdictions of $12.7 million, $11.5 million and $85 thousand, respectively, which begin to expire in 2024. On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company has evaluated the impact of the CARES Act and determined that none of the changes would result in a material income tax benefit to the Company.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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