Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income tax expense (benefit) for the years ended December 31, 2018, 2017 and 2016 is summarized as follows:



	Years Ended December 31,
(Dollars in thousands)	2018			2017		2016
Current income taxes:
Federal	$	44,266		$	54,977	$	98,272
State	18,349			12,852		20,041
Foreign	(872		)	1,243		(10		)
Total current income taxes	$	61,743		$	69,072	$	118,303
Deferred income taxes:
Federal	$	40,500		$	51,668	$	4,464
State	11,705			10,403		(14		)
Foreign	3,019			1,172		2,226
Total deferred income taxes	$	55,224		$	63,243	$	6,676
Total income tax expense	$	116,967		$	132,315	$	124,979

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 and actual income tax expense is as follows:



	Years Ended December 31,
(Dollars in thousands)	2018			2017			2016
Income tax expense using the statutory Federal income tax rate of 21% in 2018, and 35% in 2017 and 2016, on income before income taxes	$	96,628		$	136,499		$	116,149
Increase (decrease) in tax resulting from:
Tax-exempt interest, net of interest expense disallowance	(3,869		)	(4,658		)	(3,634		)
State taxes, net of federal tax benefit	23,584			15,115			13,017
Income earned on bank owned life insurance	(1,002		)	(1,167		)	(1,198		)
Excess tax benefits on share based compensation	(3,107		)	(5,470		)	—
Enactment of Tax Cuts and Jobs Act
Re-measurement of net deferred tax liabilities	(1,209		)	(10,402		)	—
Transition tax on deferred foreign earnings	—			2,850			—
Meals, entertainment and related expenses	1,840			1,710			1,439
FDIC insurance expense	1,832			—			—
Non-deductible compensation expense	1,366			55			77
Foreign subsidiary, net	1,591			(271		)	(264		)
Tax benefits related to tax credit investments, net	(656		)	(698		)	(572		)
Other, net	(31		)	(1,248		)	(35		)
Income tax expense	$	116,967		$	132,315		$	124,979

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, 2018 and 2017 are as follows:




(Dollars in thousands)	2018			2017
Deferred tax assets:
Allowance for credit losses	$	40,342		$	36,442
Deferred compensation	22,363			12,310
Net unrealized losses on securities included in other comprehensive income	15,430			7,465
Stock-based compensation	7,544			6,898
Federal net operating loss carryforward	5,348			3,063
Loans	4,540			4,943
Other real estate owned	2,429			4,019
AMT credit carryforward	1,395			1,199
Nonaccrued interest	1,357			983
Mortgage banking recourse obligation	632			722
Other	3,744			2,307
Total gross deferred tax assets	105,124			80,351
Deferred tax liabilities:
Equipment leasing	90,306			42,681
Premises and equipment	28,517			23,211
Capitalized servicing rights	16,663			8,916
Goodwill and intangible assets	12,921			7,619
Deferred loan fees and costs	3,446			3,531
Net unrealized gains on derivatives included in other comprehensive income	2,863			3,197
Fair value adjustments on loans	2,833			3,143
Other	5,295			3,433
Total gross deferred liabilities	162,844			95,731
Net deferred tax liabilities	$	(57,720	)	$	(15,380	)

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)	2018		2017			2016
Unrecognized tax benefits at beginning of year	$	10,821	$	11,626		$	—
Gross increases for tax positions taken in current period	—		—			—
Gross increases (decreases) for positions taken in prior periods	717		(805		)	11,626
Unrecognized tax benefits at end of the year	$	11,538	$	10,821		$	11,626