Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 2021 and 2020:



($ in thousands)	Year Ended December 31,
	2022		2021		2020
Current income tax expense (benefit):
Federal	$	163,797	$	84,249	$	84,560
State	160,629		95,939		74,252
Foreign	3,133		(1,554)		671
Total current income tax expense	327,559		178,634		159,483
Deferred income (benefit) tax expense:
Federal	(23,484)		1,528		(28,093)
State	(21,835)		3,259		(11,671)
Foreign	1,331		(25)		(1,751)
Total deferred income (benefit) tax expense	(43,988)		4,762		(41,515)
Income tax expense	$	283,571	$	183,396	$	117,968

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, 2022, 2021 and 2020:



	Year Ended December 31,
	2022		2021		2020
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	7.8		7.4		7.2

Tax credits and benefits, net of related expenses	(8.9)		(11.3)		(12.4)
Other, net	0.2		0.3		1.4
Effective tax rate	20.1	%	17.4	%	17.2	%

Schedule of Temporary Differences that Give Rise to a Significant Portion of Deferred Tax Assets and Liabilities

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, 2022 and 2021:



($ in thousands)	December 31,
	2022		2021

Deferred tax assets:
Allowance for credit losses and nonperforming assets valuation allowance	$	191,187	$	166,398
Investments in qualified affordable housing partnerships, tax credit and other investments, net	21,011		14,977
Stock compensation and other accrued compensation	25,857		23,954
Interest income on nonaccrual loans	5,185		4,192
State taxes	13,259		5,237
Net unrealized losses on debt securities and derivatives	309,837		37,423
Tax credit carryforwards	—		8,692
Premises and equipment	3,827		1,434

Lease liabilities	34,859		31,324
Other	6,169		1,018
Total deferred tax assets	$	611,191	$	294,649


Deferred tax liabilities:
Equipment lease financing	$	27,237	$	26,607
Investments in qualified affordable housing partnerships, tax credit and other investments, net	7,709		12,187

FHLB stock dividends	1,926		1,886
Mortgage servicing assets	1,963		1,759
Acquired debts	1,477		1,536
Prepaid expenses	2,478		1,525



Operating lease right-of-use assets	32,606		29,472
Other	6,270		1,547
Total deferred tax liabilities	$	81,666	$	76,519
Net deferred tax assets	$	529,525	$	218,130

Schedule of Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020:



	Year Ended December 31,
($ in thousands)	2022		2021		2020
Beginning balance	$	5,045	$	5,045	$	—
Additions for tax positions related to prior years	—		—		5,045

Settlements with taxing authorities	(4,568)		—		—
Ending balance	$	477	$	5,045	$	5,045