Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

At December 31, 2021, 2020 and 2019 income tax expense consisted of the following:


(Dollars in thousands)	2021		2020		2019
Current tax expense
Federal	$	140,405	$	137,162	$	68,984
State	21,383		14,532		11,095
Total current tax expense	161,788		151,694		80,079
Deferred tax (benefit) expense
Federal	(6,234)		(28,535)		50,522
State	(1,352)		3,000		4,076
Total deferred tax (benefit) expense	(7,586)		(25,535)		54,598
Total income tax expense	$	154,202	$	126,159	$	134,677

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% to pretax income as a result of the following:


(Dollars in thousands)	2021		2020		2019
Income taxes at federal statutory rates	$	147,349	$	129,755	$	124,330
Increase (reduction) in income taxes resulting from:
Nontaxable income on loans, leases and investments, net of nondeductible expenses	(1,523)		(1,581)		(1,639)
Excess tax benefits of compensation	1,507		1,146		1,070
State and local income taxes, including any change in valuation allowance, net of federal income tax benefit	15,825		13,850		11,985

Tax credits net of amortization	(5,078)		(5,367)		(4,474)
Repayment of claim of right income	(2,254)		(13,926)		—
Other, net	(1,624)		2,282		3,405
Total income tax expense	$	154,202	$	126,159	$	134,677

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax liability included the following components at December 31, 2021, and 2020:


(Dollars in thousands)	2021		2020
Allowance for credit losses	$	39,759	$	52,293
Operating lease liabilities	14,267		15,737

Executive separation from service agreements	7,835		8,989

Net operating loss carryforwards	7,843		9,545

Net unrealized loss included in accumulated other comprehensive income (loss)	4,630		—
Accelerated depreciation	3,645		—
Employee compensation	18,860		16,083

Other reserves	6,135		5,376
Other	5,845		6,898
Deferred tax asset	108,819		114,921
Accelerated depreciation	—		14,984
Lease financing activities	7,725		15,265
Operating lease assets	13,996		15,670
Net unrealized gain on securities included in accumulated other comprehensive income (loss)	—		24,857
Net deferred loan fees and costs	14,662		13,975
Intangible assets	14,257		13,012
Security, loan and debt valuations	5,960		2,051
FDIC assisted transactions timing differences	—		2,393

Pension assets	64,068		44,549
Other	20,998		10,193
Deferred tax liability	141,666		156,949
Net deferred tax liability	$	(32,847)	$	(42,028)

Schedule of Unrecognized Tax Benefits

The following table provides a roll forward of BancShares’ gross unrecognized tax benefits, excluding interest and penalties, during the years ended December 31, 2021, 2020 and 2019:


(Dollars in thousands)	2021		2020		2019
Unrecognized tax benefits at the beginning of the year	$	31,375	$	32,226	$	28,255
Additions (reductions) related to tax positions taken in prior year	(321)		153		(683)
Additions related to tax positions taken in current year	1,373		1,295		6,554
Settlements	(1,601)		(1,516)		—
Reductions related to lapse of statute of limitations	(394)		(783)		(1,900)
Unrecognized tax benefits at the end of the year	$	30,432	$	31,375	$	32,226