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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 16 - Income Taxes The components of income tax expense (benefit) included on the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 are presented below:
(in thousands) | 2021 |  | 2020 |  | 2019
Current |  |  |  |  |
Federal | $ | 153,911 |  |  | $ | 187,741 |  |  | $ | 112,517 |
State | 29,982 |  |  | 9,421 |  |  | 2,085 |
Total current income tax expense | 183,893 |  |  | 197,162 |  |  | 114,602 |
Deferred |  |  |  |  |
Federal | 28,873 |  |  | (90,777) |  |  | 46,182 |
State | 16,127 |  |  | 4,585 |  |  | 40,451 |
Total deferred income tax expense (benefit) | 45,000 |  |  | (86,192) |  |  | 86,633 |
Total income tax expense | $ | 228,893 |  |  | $ | 110,970 |  |  | $ | 201,235 |
Income tax expense as shown on the consolidated statements of income differed from the federal statutory rate for the years ended December 31, 2021, 2020, and 2019. A reconciliation of the differences is presented below:
| Years Ended December 31,
(dollars in thousands) | 2021 |  | 2020 |  | 2019
Income tax expense at statutory federal income tax rate | $ | 207,765 |  |  | $ | 101,779 |  |  | $ | 160,653 |
Increase (decrease) resulting from: |  |  |  |  |
State income tax expense, net of federal income tax benefit | 38,452 |  |  | 11,168 |  |  | 33,764 |
Income not subject to tax | (10,455) |  |  | (9,207) |  |  | (6,564) |
Low income housing tax credits and other tax benefits, net of amortization | (4,858) |  |  | (2,611) |  |  | (1,583) |
FDIC premiums | 4,111 |  |  | 4,744 |  |  | 5,802 |
General business tax credits | (3,727) |  |  | (657) |  |  | (678) |
Excess tax benefit from share-based compensation | (3,084) |  |  | 311 |  |  | (1,337) |
Executive compensation | 1,096 |  |  | 1,501 |  |  | 6,385 |
Goodwill impairment | — |  |  | 9,424 |  |  | — |
Other, net | (407) |  |  | (5,482) |  |  | 4,793 |
Total income tax expense | $ | 228,893 |  |  | $ | 110,970 |  |  | $ | 201,235 |
Effective tax rate | 23.1 | % |  | 22.9 | % |  | 26.3 | %
The components of the Company's deferred tax assets and liabilities at December 31, 2021 and 2020 are presented below:
(in thousands) | 2021 |  | 2020
Deferred tax assets |  |  |
Allowance for loan losses | $ | 112,180 |  |  | $ | 165,691 |
Lease liability | 102,412 |  |  | 98,340 |
Employee benefits and deferred compensation | 35,782 |  |  | 27,917 |
Net operating loss carryforwards | 23,897 |  |  | 29,684 |
Net unrealized losses on investment securities available for sale and cash flow hedges | 19,261 |  |  | — |
Deferred revenue | 18,487 |  |  | 24,751 |
Tax credit carryforwards | 15,870 |  |  | 8,605 |
Fair value of investment securities and loans | 6,439 |  |  | 10,093 |
Non-performing loan interest | 2,621 |  |  | 12,472 |
Other | 7,100 |  |  | 9,819 |
Total gross deferred tax assets | 344,049 |  |  | 387,372 |
Less valuation allowance | (19,003) |  |  | (19,191) |
Total deferred tax assets | 325,046 |  |  | 368,181 |
Deferred tax liabilities |  |  |
Right-of-use asset | (98,773) |  |  | (98,681) |
Excess tax over financial statement depreciation | (27,355) |  |  | (40,452) |
Purchase accounting intangibles | (14,820) |  |  | (14,458) |
Other properties held for sale | (5,345) |  |  | (3,025) |
Prepaid expense | (4,631) |  |  | (5,955) |
Net unrealized gains on investment securities available for sale and cash flow hedges | — |  |  | (64,344) |
Other | (5,071) |  |  | (10,418) |
Total gross deferred tax liabilities | (155,995) |  |  | (237,333) |
Net deferred tax assets | $ | 169,051 |  |  | $ | 130,848 |
Synovus believes the realization of net deferred tax assets (after valuation allowance) at December 31, 2021 is more likely than not based on its history of cumulative profitability as well as expectations of future taxable income, including reversals of taxable temporary differences, in the jurisdictions in which it operates. Synovus expects that a portion of its $23.9 million of federal and state NOLs, which have carryforward periods ending in tax years 2023 through 2034, will not be realized before their carryforward period lapses and the Company has accordingly established a valuation allowance in the amount of $19.0 million at December 31, 2021 and $19.2 million at December 31, 2020. State tax credit deferred tax assets at December 31, 2021 total $15.9 million and have expiration dates through the tax year 2031. State NOLs and tax credit carryforwards as of December 31, 2021 are summarized in the following table.
Tax Carryforwards | As of December 31, 2021
(in thousands) | Expiration Dates |  | Deferred Tax Asset, Before Valuation Allowance |  | Valuation Allowance |  | Net Deferred Tax Asset Balance
Net operating losses - federal | 2027-2033 |  | $ | 19,592 |  |  | $ | (15,851) |  |  | $ | 3,741 |
Net operating losses - states | 2023-2034 |  | 4,305 |  |  | (3,152) |  |  | 1,153 |
Other credits - states | 2022-2031 |  | 15,870 |  |  | — |  |  | 15,870 |
Synovus is subject to income taxation in the United States and various state and local taxing jurisdictions. Generally, Synovus is no longer subject to income tax examinations by the IRS for years before 2018 and by state and local income tax authorities for years before 2015. Although Synovus is unable to determine the ultimate outcome of current and future examinations, Synovus believes that the resolution of these examinations will not have a material effect on the consolidated financial statements. A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact).
| Years Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Balance at January 1, | $ | 20,250 |  |  | $ | 20,994 |  |  | $ | 18,586 |
Additions based on income tax positions related to current year | 3,754 |  |  | 461 |  |  | 550 |
Additions for income tax positions of prior years(1) | 1,379 |  |  | 147 |  |  | — |
Additions from acquisition | — |  |  | — |  |  | 3,464 |
Reductions for income tax positions of prior years | (200) |  |  | (327) |  |  | (1,589) |
Statute of limitation expirations | (79) |  |  | (820) |  |  | (17) |
Settlements | — |  |  | (205) |  |  | — |
Balance at December 31, | $ | 25,104 |  |  | $ | 20,250 |  |  | $ | 20,994 |
(1) Includes deferred tax benefits that could reduce future tax liabilities. Accrued interest and penalties related to unrecognized income tax benefits are recognized as a component of income tax expense, and totaled $3.3 million, $2.7 million, and $3.3 million as of December 31, 2021, 2020 and 2019, respectively. Unrecognized income tax benefits as of December 31, 2021, 2020 and 2019 that, if recognized, would affect the effective income tax rate totaled $23.5 million, $19.1 million and $20.4 million (net of the federal benefit on state income tax issues), respectively. It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur within the next 12 months. At this time, Synovus expects that $2.3 million of uncertain income tax positions will be either settled or resolved during the next twelve months.

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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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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