Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 is summarized as follows:



	Years Ended December 31,
(Dollars in thousands)	2016			2015			2014
Current income taxes:
Federal	$	98,272		$	62,584		$	75,945
State	20,041			9,417			10,397
Foreign	(10		)	(39		)	4,566
Total current income taxes	$	118,303		$	71,962		$	90,908
Deferred income taxes:
Federal	$	4,464		$	15,550		$	466
State	(14		)	5,962			6,113
Foreign	2,226			1,542			(2,454		)
Total deferred income taxes	$	6,676		$	23,054		$	4,125
Total income tax expense	$	124,979		$	95,016		$	95,033

Reconciliation of the Differences Between Taxes Computed Using the Statutory Federal Income Tax Rate and Actual Income Tax Expense

A reconciliation of the differences between taxes computed using the statutory Federal income tax rate of 35% and actual income tax expense is as follows:



	Years Ended December 31,
(Dollars in thousands)	2016			2015			2014
Income tax expense based upon the Federal statutory rate on income before income taxes	$	116,149		$	88,118		$	86,251
Increase (decrease) in tax resulting from:
Tax-exempt interest, net of interest expense disallowance	(3,634		)	(2,878		)	(1,936		)
State taxes, net of federal tax benefit	13,017			9,996			10,731
Income earned on bank owned life insurance	(1,198		)	(1,562		)	(896		)
Meals, entertainment and related expenses	1,439			1,283			1,026
Foreign subsidiary, net	(264		)	148			775
Tax benefits related to tax credit investments	(572		)	(778		)	(1,498		)
Other, net	42			689			580
Income tax expense	$	124,979		$	95,016		$	95,033

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2016 and 2015 are as follows:




(Dollars in thousands)	2016		2015
Deferred tax assets:
Allowance for credit losses	$	46,519	$	39,561
Deferred compensation	28,125		25,492
Net unrealized losses on securities included in other comprehensive income	19,036		11,476
Covered assets	18,484		17,754
Stock-based compensation	9,704		9,760
Federal net operating loss carryforward	7,624		4,705
Other real estate owned	7,151		7,610
Loans - purchase accounting adjustments	5,055		749
Foreign net operating loss carryforward	3,476		6,616
Mortgage banking recourse obligation	2,025		1,565
Nonaccrued interest	1,884		1,603
AMT credit carryforward	1,872		1,498
Net unrealized losses on derivatives included in other comprehensive income	—		1,386
Other	2,408		3,361
Total gross deferred tax assets	153,363		133,136
Deferred tax liabilities:
Premises and equipment	31,053		33,423
Equipment leasing	28,440		15,089
Goodwill and intangible assets	10,085		8,198
Capitalized servicing rights	7,326		3,330
Deferred loan fees and costs	5,131		6,045
Fair value adjustments on loans	3,163		6,086
Net unrealized gains on derivatives included in other comprehensive income	2,732		—
FHLB stock dividends	346		904
Other	6,334		5,874
Total gross deferred liabilities	94,610		78,949
Net deferred tax assets	$	58,753	$	54,187

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

The Company accounts for uncertainties in income taxes in accordance with ASC 740, Income Taxes. The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits:



	Years Ended December 31,
(Dollars in thousands)	2016		2015		2014
Unrecognized tax benefits at beginning of year	$	—	$	—	$	—
Gross increases for tax positions taken in current period	—		—		—
Gross increases and decreases for positions taken in prior periods	11,626		—		—
Unrecognized tax benefits at end of the year	$	11,626	$	—	$	—