Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

At December 31, 2018, 2017 and 2016 income tax expense consisted of the following:



(Dollars in thousands)	2018			2017		2016
Current tax expense
Federal	$	95,151		$	87,992	$	84,946
State	21,523			6,116		7,493
Total current tax expense	116,674			94,108		92,439
Deferred tax expense (benefit)
Federal	(10,944		)	115,392		23,144
State	(2,433		)	10,446		10,002
Total deferred tax expense (benefit)	(13,377		)	125,838		33,146
Total income tax expense	$	103,297		$	219,946	$	125,585

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differed from the amounts computed by applying the statutory federal income tax rate of 21 percent for 2018 and 35 percent for 2017 and 2016 to pretax income as a result of the following:



(Dollars in thousands)	2018			2017			2016
Income taxes at federal statutory rates	$	105,758		$	190,294		$	122,874
(Reduction) increase in income taxes resulting from:
Nontaxable income on loans, leases and investments, net of nondeductible expenses	(1,796		)	(2,525		)	(2,901		)
Nondeductible FDIC insurance expense	2,348			—			—
State and local income taxes, including change in valuation allowance, net of federal income tax benefit	15,081			10,765			11,372
Effect of federal rate change	(15,736		)	25,762			—
Tax credits net of amortization	(2,891		)	(4,840		)	(4,138		)
Other, net	533			490			(1,622		)
Total income tax expense	$	103,297		$	219,946		$	125,585

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset included the following components at December 31, 2018 and 2017:



(Dollars in thousands)	2018		2017
Allowance for loan and lease losses	$	53,391	$	50,853
Pension liability	—		704
Executive separation from service agreements	7,927		8,548
Net operating loss carryforwards	6,862		2,685
Net unrealized loss included in comprehensive income	32,663		10,849
Employee compensation	11,145		4,192
FDIC assisted transactions timing differences	7,622		—
Other reserves	5,574		5,570
Other	9,555		5,924
Deferred tax asset	134,739		89,325
Accelerated depreciation	4,987		7,562
Lease financing activities	12,674		9,131
Net deferred loan fees and costs	10,651		8,708
Intangible assets	11,713		12,252
Security, loan and debt valuations	4,557		7,018
FDIC assisted transactions timing differences	—		1,113
Pension liability	6,287		—
Other	1,722		4,565
Deferred tax liability	52,591		50,349
Net deferred tax asset	$	82,148	$	38,976

Schedule of Unrecognized Tax Benefits

The following table provides a rollforward of BancShares’ gross unrecognized tax benefits, excluding interest and penalties, during the years ended December 31, 2018, 2017 and 2016:



(Dollars in thousands)	2018			2017			2016
Unrecognized tax benefits at the beginning of the year	$	29,004		$	28,879		$	5,975
Reductions related to tax positions taken in prior year	(1,054		)	(44		)	(327		)
Additions related to tax positions taken in current year	1,433			169			23,231
Reductions related to lapse of statute of limitations	(1,128		)	—			—
Unrecognized tax benefits at the end of the year	$	28,255		$	29,004		$	28,879