Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 is summarized as follows:


	Years Ended December 31,
(In thousands)	2022		2021		2020
Current income taxes:
Federal	$	116,976	$	118,723	$	75,154
State	48,633		48,847		19,194
Foreign	3,207		6,936		6,501
Total current income taxes	$	168,816	$	174,506	$	100,849
Deferred income taxes:
Federal	$	18,560	$	794	$	284
State	(1,183)		(3,597)		(2,834)
Foreign	4,680		(58)		(1,508)
Total deferred income taxes	$	22,057	$	(2,861)	$	(4,058)
Total income tax expense	$	190,873	$	171,645	$	96,791

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)	2022		2021		2020
Income tax expense using the statutory Federal income tax rate of 21% on income before taxes	$	147,117	$	133,937	$	81,854
Increase (decrease) in tax resulting from:
Tax-exempt interest, net of interest expense disallowance	(3,936)		(2,605)		(2,970)
State taxes, net of federal tax benefit	37,328		35,747		20,098
Income earned on bank owned life insurance	(102)		(1,169)		(956)

(Excess) deficient tax benefits on share based compensation	(2,278)		(1,906)		466



Meals, entertainment and related expenses	1,506		1,208		992
FDIC insurance expense	6,014		5,676		4,605
Non-deductible compensation expense	2,361		1,799		398
Foreign subsidiary, net	2,376		2,011		2,080
Tax benefits related to tax credits, net	(338)		(1,145)		(1,902)
Release of state uncertain tax positions	—		—		(7,173)
Other, net	825		(1,908)		(701)
Income tax expense	$	190,873	$	171,645	$	96,791

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, 2022 and 2021 are as follows:



(In thousands)	2022		2021
Deferred tax assets:
Net unrealized losses on securities included in other comprehensive income	$	140,002	$	—
Allowance for credit losses	95,389		$	79,879
Right-of-use liability	44,277		47,312
Deferred compensation	26,411		26,301
Stock-based compensation	11,196		5,762
Federal net operating loss carryforward	1,003		1,870

Nonaccrued interest	875		1,098
Loans	819		1,344













Other	4,497		4,652
Total gross deferred tax assets	324,469		168,218
Deferred tax liabilities:
Equipment leasing	138,198		122,711
Premises and equipment	51,058		56,377
Right-of-use asset	36,484		38,973
Capitalized servicing rights	59,928		37,528
Goodwill and intangible assets	12,636		10,577
Deferred loan fees and costs	5,061		967
Net unrealized gains on derivatives included in other comprehensive income	2,364		9,836
Net unrealized gains on securities included in other comprehensive income	—		3,169






Other	1,387		3,835
Total gross deferred tax liabilities	307,116		283,973
Net deferred tax assets (liabilities)	$	17,353	$	(115,755)

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

The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits:


	Years Ended December 31,
(In thousands)	2022		2021		2020
Unrecognized tax benefits at beginning of year	$	—	$	—	$	10,840
Gross increases for tax positions taken in current period	—		—		—
Gross decreases for positions taken in prior periods	—		—		(10,571)
Settlements with taxing authorities	—		—		(269)
Unrecognized tax benefits at end of year	$	—	$	—	$	—