Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of components of income tax expense/benefit

The following table presents the components of income tax expense/benefit for the years ended December 31, 2020, 2019 and 2018:



($ in thousands)	Year Ended December 31,
	2020		2019		2018
Current income tax expense (benefit):
Federal	$	84,560	$	107,393	$	63,035
State	74,252		86,578		64,917
Foreign	671		(2,485)		3,513
Total current income tax expense	159,483		191,486		131,465
Deferred income tax (benefit) expense:
Federal	(28,093)		(8,801)		(11,870)
State	(11,671)		(16,390)		(4,600)
Foreign	(1,751)		3,587		—
Total deferred income tax benefit	(41,515)		(21,604)		(16,470)
Income tax expense	$	117,968	$	169,882	$	114,995

Schedule of reconciliation of the federal statutory rate to the effective tax rate

The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2020, 2019 and 2018:



	Year Ended December 31,
	2020		2019		2018
Statutory U.S. federal tax rate	21.0	%	21.0	%	21.0	%
U.S. state income taxes, net of U.S. federal income tax effect	7.2		7.1		5.8

Tax credits and benefits, net of related expenses	(12.4)		(6.8)		(12.7)
Other, net	1.4		(1.2)		(0.1)
Effective tax rate	17.2	%	20.1	%	14.0	%

Schedule of temporary differences that give rise to a significant portion of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2020 and 2019 are presented below:



($ in thousands)	December 31,
	2020		2019

Deferred tax assets:
Allowance for loan losses	$	192,534	$	109,903
Investments in qualified affordable housing partnerships, tax credit and other investments, net	11,174		11,190
Deferred compensation	23,604		23,816
Interest income on nonaccrual loans	5,909		9,527
State taxes	273		5,848


Premises and equipment	2,096		1,578

Lease liability	30,554		35,948
Other	1,441		965
Total gross deferred tax assets	267,585		198,775
Valuation allowance	—		(21)
Total deferred tax assets, net of valuation allowance	$	267,585	$	198,754
Deferred tax liabilities:
Equipment lease financing	$	29,990	$	30,669
Investments in qualified affordable housing partnerships, tax credit and other investments, net	14,912		12,301
Core deposit intangibles	1,934		3,032
FHLB stock dividends	1,855		1,854
Mortgage servicing assets	1,675		1,839
Acquired debt	1,597		1,679
Prepaid expenses	1,194		1,100

Premises and equipment	99		1,890
Unrealized gains/losses on securities	21,593		890
Operating lease right-of-use assets	28,468		34,313
Other	453		2,700
Total gross deferred tax liabilities	$	103,770	$	92,267
Net deferred tax assets	$	163,815	$	106,487

Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018:



($ in thousands)	Year Ended December 31,
	2020		2019		2018
Beginning balance	$	—	$	4,378	$	10,419
Additions for tax positions related to prior years	5,045		30,103		—
Deductions for tax positions related to prior years	—		(34,481)		(3,969)
Settlements with taxing authorities	—		—		(2,072)
Ending balance	$	5,045	$	—	$	4,378