Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024, 2023 and 2022:



	Year Ended December 31,
($ in thousands)	2024		2023		2022
Current income tax expense:
Federal	$	166,268	$	172,428	$	163,797
State	153,891		173,080		160,629
Foreign	10,399		2,240		3,133
Total current income tax expense	330,558		347,748		327,559
Deferred income tax (benefit) expense:
Federal	(6,467)		(24,319)		(23,484)
State	(5,582)		(23,415)		(21,835)
Foreign	(2,234)		(1,405)		1,331
Total deferred income tax benefit	(14,283)		(49,139)		(43,988)
Income tax expense	$	316,275	$	298,609	$	283,571

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, 2024, 2023 and 2022:



	Year Ended December 31,
	2024		2023		2022
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	7.7		8.1		7.8

Tax credits and benefits, net of amortization	(7.4)		(9.9)		(8.9)
Other, net	—		1.3		0.2
Effective tax rate	21.3	%	20.5	%	20.1	%

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, 2024 and 2023:



	December 31,
($ in thousands)	2024		2023

Deferred tax assets:
Allowance for credit losses and nonperforming assets valuation allowance	$	233,879	$	217,731
Net unrealized losses on AFS debt and transferred securities	223,814		246,835
Stock compensation and other accrued compensation	41,118		33,169
Lease liabilities	27,644		32,636
FDIC special assessment charge	16,843		22,212
Basis difference in investments	17,708		28,216
State capital loss and tax credit carryforwards	11,122		266
Nonaccrual loans’ interest income	8,809		7,034
State taxes	5,808		9,885

Other	14,665		10,535
Total deferred tax assets	$	601,410	$	608,519


Deferred tax liabilities:
Operating lease right-of-use assets	$	25,647	$	30,272
Basis difference in investments	25,587		23,103
Equipment lease financing	10,395		15,564
Prepaid expenses	2,319		2,981

FHLB stock dividends	1,961		1,947
Mortgage servicing assets	1,678		2,102






Other	20,479		13,801
Total deferred tax liabilities	$	88,066	$	89,770
Net deferred tax assets	$	513,344	$	518,749

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, 2024, 2023 and 2022:



	Year Ended December 31,
($ in thousands)	2024			2023		2022
Beginning balance	$	1,193		$	477	$	5,045
Additions for tax positions related to prior years	2,698		(1)	459		—

Additions for tax positions related to current year	779			257		—
Settlements with taxing authorities	—			—		(4,568)		(2)
Ending balance	$	4,670		$	1,193	$	477

(1)In 2024, the increase in positions related to prior years primarily related to proposed adjustments resulting from examination of the Company’s state tax returns.

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