XML 41 R23.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes (In Thousands) Significant components of the provision for income taxes are as follows for the periods presented:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Current |  |  |  |  |
Federal | $ | 30,193 |  |  | $ | 23,786 |  |  | $ | 22,658 |
State | 3,309 |  |  | 4,264 |  |  | 2,625 |
| 33,502 |  |  | 28,050 |  |  | 25,283 |
Deferred |  |  |  |  |
Federal | (10,947) |  |  | 17,331 |  |  | 13,369 |
State | (2,715) |  |  | 2,710 |  |  | 3,075 |
| (13,662) |  |  | 20,041 |  |  | 16,444 |
| $ | 19,840 |  |  | $ | 48,091 |  |  | $ | 41,727 |
The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Tax at U.S. statutory rate | $ | 21,733 |  |  | $ | 45,294 |  |  | $ | 39,616 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
Tax-exempt interest income | (1,431) |  |  | (1,205) |  |  | (1,433) |
BOLI income | (1,182) |  |  | (1,283) |  |  | (975) |
Investment tax credits | (1,494) |  |  | (1,863) |  |  | (1,863) |
Amortization of investment in low-income housing tax credits | 1,280 |  |  | 1,575 |  |  | 1,592 |
State income tax expense, net of federal benefit | 469 |  |  | 5,509 |  |  | 4,502 |
Other items, net | 465 |  |  | 64 |  |  | 288 |
| $ | 19,840 |  |  | $ | 48,091 |  |  | $ | 41,727 |
Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:
| December 31,
| 2020 |  | 2019
Deferred tax assets |  |  |
Allowance for credit losses | $ | 53,597 |  |  | $ | 14,304 |
Loans | 5,526 |  |  | 10,284 |
Deferred compensation | 13,114 |  |  | 12,050 |
Impairment of assets | 1,067 |  |  | 1,108 |
Net operating loss carryforwards | 1,857 |  |  | 9,387 |
Lease liabilities under operating leases | 17,732 |  |  | 22,686 |
Other | 3,539 |  |  | 5,819 |
Total deferred tax assets | 96,432 |  |  | 75,638 |
Deferred tax liabilities |  |  |
Net unrealized gains on securities | 8,434 |  |  | 190 |
Investment in partnerships | 793 |  |  | 967 |
Fixed assets | 3,285 |  |  | 2,952 |
Mortgage servicing rights | 14,623 |  |  | 13,472 |
Junior subordinated debt | 2,245 |  |  | 2,304 |
Intangibles | 3,882 |  |  | 4,885 |
Lease right-of-use asset | 16,833 |  |  | 21,727 |
Other | 1,672 |  |  | 1,859 |
Total deferred tax liabilities | 51,767 |  |  | 48,356 |
Net deferred tax assets | $ | 44,665 |  |  | $ | 27,282 |
The effective tax rate was 19.40% and 22.30% for the year ended December 31, 2020 and 2019, respectively. The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2017 through 2019. The Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2017 through 2019. The Company acquired federal and state net operating losses as part of its previous acquisitions, with varying expiration periods. The federal and state net operating losses acquired in the Brand acquisition were $81,288 and $55,067, respectively, all created in 2018. As part of the 2017 Tax Cuts and Jobs Act and corresponding state tax laws, the federal net operating losses and the majority of the state net operating losses created by Brand during 2018 have an indefinite carryforward period. As of December 31, 2020, there are state net operating losses without expiration periods, related to the Brand acquisition of $24,622. The federal net operating loss related to the Brand acquisition was fully utilized during 2020. The federal and state net operating losses acquired in the Heritage Financial Group, Inc. acquisition were $18,321 and $16,849, respectively, of which $3,029 and $2,205 remain to be utilized as of December 31, 2020. These losses begin to expire in 2029 and are expected to be fully utilized. Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the year ended December 31, 2020. The table below presents the breakout of net operating losses as of the dates presented.
| December 31,
| 2020 |  | 2019
Net Operating Losses |  |  |
Federal | $ | 3,029 |  |  | $ | 36,006 |
State | 26,971 |  |  | 40,806 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below:
| 2020 |  | 2019 |  | 2018
Balance at January 1 | $ | 667 |  |  | $ | 1,919 |  |  | $ | 1,606 |
Additions based on positions related to current period | 101 |  |  | 158 |  |  | 313 |
Reductions based on positions related to prior period | (314) |  |  | (1,410) |  |  | — |
Reductions due to lapse of statute of limitations | (52) |  |  | — |  |  | — |
Balance at December 31 | $ | 402 |  |  | $ | 667 |  |  | $ | 1,919 |
If ultimately recognized, the Company does not anticipate any material increase in the effective tax rate for 2020 relative to any tax positions taken prior to January 1, 2020. The Company had accrued $18, $105 and $244 for interest and penalties related to unrecognized tax benefits as of December 31, 2020, 2019 and 2018, respectively.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration