Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Current and Deferred Income Tax Expense (Benefit)

The current and deferred amounts of income tax expense (benefit) were as follows:


	Years Ended December 31,
($ in Thousands)	2020		2019		2018
Current
Federal	$	33,020	$	50,560	$	20,246
State	16,193		15,327		12,593
Total current	49,213		65,887		32,839
Deferred
Federal	(25,895)		14,094		34,941
State	(3,118)		(261)		12,006
Total deferred	(29,013)		13,833		46,947
Total income tax expense	$	20,200	$	79,720	$	79,786

Schedule of Deferred Tax Assets and Liabilities

Temporary differences between the amounts reported on the financial statements and the tax bases of assets and liabilities resulted in deferred taxes. DTAs and liabilities at December 31, 2020 and 2019 were as follows:


($ in Thousands)	2020		2019
Deferred tax assets
Allowance for loan losses	$	88,967	$	48,790
Allowance for other losses	16,347		7,236
Accrued liabilities	4,673		4,005
Deferred compensation	27,896		28,018
Benefit of tax loss and credit carryforwards	9,789		13,444
Nonaccrual interest	1,763		1,299
Basis difference from equity securities and other investments	6,329		—

Net unrealized losses on pension and postretirement benefits	9,110		12,174
Other	997		970
Total deferred tax assets	$	165,871	$	115,936
Valuation allowance for deferred tax assets	(251)		(251)
Total deferred tax assets after valuation allowance	$	165,620	$	115,685

Deferred tax liabilities
Prepaid expenses	$	63,113	$	62,227
Goodwill	21,698		21,099
Mortgage banking activities	10,403		17,418
Deferred loan fee income	9,799		12,190
State deferred taxes	2,636		722
Lease financing	116		199
Bank premises and equipment	17,757		18,348
Purchase accounting	12,658		13,738
Basis difference from equity securities and other investments	—		2,285
Net unrealized gains on AFS securities	13,568		1,139
Other	1,049		1,156
Total deferred tax liabilities	$	152,797	$	150,521
Net deferred tax assets (liabilities)	$	12,823	$	(34,836)

Summary of Valuation Allowance [Table Text Block]

The changes in the valuation allowance related to net operating losses for 2020 and 2019 were as follows:


($ in Thousands)	2020		2019
Valuation allowance for deferred tax assets, beginning of year	$	(251)	$	(251)
(Increase) decrease in current year	—		—
Valuation allowance for deferred tax assets, end of year	$	(251)	$	(251)

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the statutory federal tax rate. The major reasons for this difference were as follows:


	2020		2019		2018
Federal income tax rate at statutory rate	21.0 %		21.0 %		21.0 %
Increases (decreases) resulting from:
Tax-exempt interest and dividends	(3.9)	%	(3.3)	%	(2.6)	%
State income taxes (net of federal benefit)	3.7 %		3.5 %		3.7 %
Bank owned life insurance	(0.9)	%	(0.8)	%	(0.7)	%
Tax effect of tax credits and benefits, net of related expenses	(1.8)	%	(0.9)	%	(0.7)	%
Tax reserve adjustments / settlements	0.1 %		0.2 %		1.5 %
Net tax (benefit) expense from stock-based compensation	0.3 %		(0.2)	%	(0.5)	%

Tax planning in response to the Tax Act	—	%	—	%	(3.6)	%
Restructuring in conjunction with ABRC sale	(13.7)	%	—	%	—	%
FDIC premium	0.8 %		0.5 %		0.9 %
Other	0.6 %		(0.4)	%	0.3 %
Effective income tax rate	6.2	%	19.6	%	19.3 %

Summary Unrecognized Tax Benefits

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


($ in Millions)	2020		2019
Balance at beginning of year	$	3	$	2


Additions for tax positions related to current year	—		1
Balance at end of year	$	3	$	3