Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Current income tax expense (benefit):
Federal	$	172,428	$	163,797	$	84,249
State	173,080		160,629		95,939
Foreign	2,240		3,133		(1,554)
Total current income tax expense	347,748		327,559		178,634
Deferred income tax (benefit) expense:
Federal	(24,319)		(23,484)		1,528
State	(23,415)		(21,835)		3,259
Foreign	(1,405)		1,331		(25)
Total deferred income tax (benefit) expense	(49,139)		(43,988)		4,762
Income tax expense	$	298,609	$	283,571	$	183,396

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, 2023, 2022 and 2021:



	Year Ended December 31,
	2023		2022		2021
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	8.1		7.8		7.4

Tax credits and benefits, net of related expenses	(9.9)		(8.9)		(11.3)
Other, net	1.3		0.2		0.3
Effective tax rate	20.5	%	20.1	%	17.4	%

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, 2023 and 2022:



	December 31,
($ in thousands)	2023		2022

Deferred tax assets:
Allowance for credit losses and nonperforming assets valuation allowance	$	217,731	$	191,187
Investments in qualified affordable housing partnerships, tax credit and other investments, net	28,216		21,011
Stock compensation and other accrued compensation	33,169		25,857
Interest income on nonaccrual loans	7,034		5,185
State taxes	9,885		13,259
Net unrealized losses on debt securities and derivatives	242,303		309,837

Premises and equipment	1,782		3,827
Lease liabilities	32,636		34,859
FDIC special assessment charge	22,212		—
Other	9,019		6,169
Total deferred tax assets	$	603,987	$	611,191


Deferred tax liabilities:
Equipment lease financing	$	15,564	$	27,237
Investments in qualified affordable housing partnerships, tax credit and other investments, net	23,103		7,709

FHLB stock dividends	1,947		1,926
Mortgage servicing assets	2,102		1,963
Acquired debts	1,398		1,477
Prepaid expenses	2,981		2,478



Operating lease right-of-use assets	30,272		32,606
Other	7,871		6,270
Total deferred tax liabilities	$	85,238	$	81,666
Net deferred tax assets	$	518,749	$	529,525

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, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022			2021
Beginning balance	$	477	$	5,045		$	5,045
Additions for tax positions related to prior years	459		—			—

Additions for tax positions related to current year	257		—			—
Settlements with taxing authorities	—		(4,568)		(1)	—
Ending balance	$	1,193	$	477		$	5,045

(1)In 2022, the Company settled an issue regarding previously claimed tax credits related to DC Solar and affiliates.