Income taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of income tax expense were as follows:

	Year Ended December 31
	2018			2017		2016
	(In thousands)
Current
Federal	$	408,428		$	363,043	$	428,750
State and local		113,706			94,714		95,426
Total current		522,134			457,757		524,176
Deferred
Federal		(12,780	)		367,308		147,662
State and local		28,637			33,482		26,351
Total deferred		15,857			400,790		174,013
Amortization of investments in qualified affordable housing projects		52,169			57,009		45,095
Total income taxes applicable to pre-tax income	$	590,160		$	915,556	$	743,284

Total income taxes differed from the amount computed by applying the statutory federal income tax rate to pre-tax income as follows:

	Year Ended December 31
	2018			2017			2016
	(In thousands)

Income taxes at statutory federal income tax rate	$	526,730		$	813,352		$	720,439
Increase (decrease) in taxes:
Tax-exempt income		(26,186	)		(40,778	)		(35,364	)
State and local income taxes, net of federal income tax effect		112,451			83,327			79,155
Qualified affordable housing project federal tax credits, net		(12,240	)		(16,015	)		(15,091	)
Initial impact of enactment of Tax Act		—			85,431			—
Other		(10,595	)		(9,761	)		(5,855	)
	$	590,160		$	915,556		$	743,284

Deferred tax assets (liabilities) were comprised of the following at December 31:

	2018			2017			2016
	(In thousands)

Losses on loans and other assets	$	322,818		$	345,609		$	590,288
Retirement benefits		30,057			45,322			143,067
Postretirement and other employee benefits		23,563			26,009			52,512
Incentive and other compensation plans		24,796			25,050			36,616
Interest on loans		—			37,900			61,266
Stock-based compensation		26,759			26,676			52,181
Unrealized losses		52,580			—			10,741
Other		43,880			66,247			106,876
Gross deferred tax assets		524,453			572,813			1,053,547
Leasing transactions		(186,787	)		(181,159	)		(266,268	)
Unrealized gains		—			(94,285	)		—
Capitalized servicing rights		(54,894	)		(51,781	)		(71,108	)
Depreciation and amortization		(61,881	)		(52,733	)		(63,959	)
Interest on loans		(18,920	)		—			—
Other		(28,350	)		(21,599	)		(87,200	)
Gross deferred tax liabilities		(350,832	)		(401,557	)		(488,535	)
Net deferred tax asset	$	173,621		$	171,256		$	565,012

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

	Federal, State and Local Tax			Accrued Interest			Unrecognized Income Tax Benefits
	(In thousands)

Gross unrecognized tax benefits at January 1, 2016	$	24,537		$	7,969		$	32,506
Increases as a result of tax positions taken during 2016		12,237			—			12,237
Increases as a result of tax positions taken in prior years		—			656			656
Decreases as a result of tax positions taken in prior years		(885	)		(710	)		(1,595	)
Gross unrecognized tax benefits at December 31, 2016		35,889			7,915			43,804
Increases as a result of tax positions taken during 2017		13,019			—			13,019
Increases as a result of tax positions taken in prior years		—			1,379			1,379
Decreases as a result of settlements with taxing authorities		(332	)		(168	)		(500	)
Decreases as a result of tax positions taken in prior years		(3,144	)		(3,475	)		(6,619	)
Gross unrecognized tax benefits at December 31, 2017		45,432			5,651			51,083
Increases as a result of tax positions taken during 2018		13,426			—			13,426
Increases as a result of tax positions taken in prior years		—			1,969			1,969
Decreases as a result of settlements with taxing authorities		(664	)		(289	)		(953	)
Decreases as a result of tax positions taken in prior years		(1,920	)		(702	)		(2,622	)
Gross unrecognized tax benefits at December 31, 2018	$	56,274		$	6,629			62,903
Less: Federal, state and local income tax benefits								(13,209	)
Net unrecognized tax benefits at December 31, 2018 that, if recognized, would impact the effective income tax rate							$	49,694