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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents the components of income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019:
($ in thousands)Year Ended December 31,
202120202019
Current income tax expense (benefit):
Federal$84,249 $84,560 $107,393 
State95,939 74,252 86,578 
Foreign(1,554)671 (2,485)
Total current income tax expense178,634 159,483 191,486 
Deferred income tax expense (benefit):
Federal1,528 (28,093)(8,801)
State3,259 (11,671)(16,390)
Foreign(25)(1,751)3,587 
Total deferred income tax expense (benefit)4,762 (41,515)(21,604)
Income tax expense$183,396 $117,968 $169,882 

The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2021, 2020 and 2019:
Year Ended December 31,
202120202019
Statutory U.S. federal tax rate21.0 %21.0 %21.0 %
U.S. state income taxes, net of U.S. federal income tax effect7.4 7.2 7.1 
Tax credits and benefits, net of related expenses
(11.3)(12.4)(6.8)
Other, net0.3 1.4 (1.2)
Effective tax rate17.4 %17.2 %20.1 %
The following table summarizes the tax effects of temporary differences that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2021 and 2020:
($ in thousands)December 31,
20212020
Deferred tax assets:
Allowance for loan losses
$166,398 $192,534 
Investments in qualified affordable housing partnerships, tax credit and other investments, net14,977 11,174 
Deferred compensation23,954 23,604 
Interest income on nonaccrual loans4,192 5,909 
State taxes5,237 273 
Unrealized losses on securities37,423 — 
Tax credit carryforwards8,692 — 
Premises and equipment1,434 2,096 
Lease liabilities31,324 30,554 
Other1,018 1,441 
Total deferred tax assets$294,649 $267,585 
Deferred tax liabilities:
Equipment lease financing$26,607 $29,990 
Investments in qualified affordable housing partnerships, tax credit and other investments, net
12,187 14,912 
Core deposit intangibles1,119 1,934 
FHLB stock dividends1,886 1,855 
Mortgage servicing assets1,759 1,675 
Acquired debts1,536 1,597 
Prepaid expenses1,525 1,194 
Premises and equipment— 99 
Unrealized gains on securities— 21,593 
Operating lease right-of-use assets29,472 28,468 
Other428 453 
Total deferred tax liabilities$76,519 $103,770 
Net deferred tax assets$218,130 $163,815 

The tax benefits of deductible temporary differences and tax carryforwards are recorded as an asset to the extent that management assesses the utilization of such temporary differences and carryforwards to be more-likely-than-not. A valuation allowance is used, as needed, to reduce the deferred tax assets to the amount that is more-likely-than-not to be realized. Evidence the Company considers includes the Company’s ability to generate future taxable income, implement tax-planning strategies (as defined in ASC 740, Income Taxes), and utilize taxable income from prior carryback years (if such carryback is permitted under the applicable tax law), as well as future reversals of existing taxable temporary differences. The Company expects to have sufficient taxable income in future years to fully realize its deferred tax assets. The Company also performed an overall assessment by weighing all positive evidence against all negative evidence and concluded that it is more-likely-than-not that all of the benefits of the deferred tax assets will be realized, with the exception of the deferred tax assets related to certain state net operating losses carryforwards. No valuation allowance was recorded as of both December 31, 2021 and 2020.

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019:
($ in thousands)Year Ended December 31,
202120202019
Beginning balance$5,045 $— $4,378 
Additions for tax positions related to prior years— 5,045 30,103 
Deductions for tax positions related to prior years— — (34,481)
Ending balance$5,045 $5,045 $— 
The Company believes that adequate provisions have been recorded for all income tax uncertainties consistent with the standards of ASC 740-10. The Company recognizes interest and penalties, as applicable, related to the underpayment of income taxes as a component of Income tax expense on the Consolidated Statement of Income. The Company recorded a charge of $921 thousand of interest for the year ended December 31, 2021. In comparison, a charge of $564 thousand of interest and a reversal of $6.3 million of interest and penalties were recorded for the years ended December 31, 2020 and 2019, respectively. Total accrued interest included in Accrued expenses and other liabilities on the Consolidated Balance Sheet was $921 thousand and $564 thousand as of December 31, 2021 and 2020, respectively.

Beginning with its 2012 tax year, the Company has executed a Memorandum of Understanding (“MOU”) with the Internal Revenue Service (“IRS”) to voluntarily participate in the IRS Compliance Assurance Process (“CAP”). Under the CAP, the IRS audits the tax position of the Company to identify and resolve any tax issues that may arise throughout the tax year. The objective of the CAP is to resolve issues in a timely and contemporaneous manner and eliminate the need for a lengthy post-filing examination. The Company has executed a MOU with the IRS for the 2019 tax year. For federal tax purposes, the IRS had completed the 2017 and earlier tax years’ corporate income tax return examination. For the 2020 and 2021 tax years, the Company was accepted by the IRS as a CAP Bridge Year. The Company is also currently being audited by the states of Missouri, California, and New York, as well as by the city of New York. The Company does not believe that the outcome of unresolved issues or claims in any tax jurisdiction is likely to be material to the Company’s financial position, cash flows or results of operations. The Company believes that adequate provisions have been recorded for all income tax uncertainties consistent with ASC 740, Income Taxes as of December 31, 2021.