Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense reflects the following expense (benefit) components:



	Years ended December 31,
(In thousands)	2015			2014			2013
Current:
Federal	$	98,442		$	90,542		$	62,042
State and local	11,047			6,585			3,572
Total current	109,489			97,127			65,614
Deferred:
Federal	(7,279		)	(3,784		)	10,760
State and local	(8,234		)	(1,370		)	739
Total deferred	(15,513		)	(5,154		)	11,499

Total federal	91,163			86,758			72,802
Total state and local	2,813			5,215			4,311
Income tax expense	$	93,976		$	91,973		$	77,113

Schedule of Effective Income Tax Rate Reconciliation

The following table reflects a reconciliation of reported income tax expense to the amount that would result from applying the federal statutory rate of 35.0%:



	Years ended December 31,
	2015					2014					2013
(Dollars in thousands)	Amount			Percent		Amount			Percent		Amount			Percent
Income tax expense at federal statutory rate	$	105,111		35.0	%	$	102,095		35.0	%	$	89,799		35.0	%
Reconciliation to reported income tax expense:
State and local income taxes, net of federal benefit	7,613			2.5		3,390			1.2		2,802			1.1
Tax-exempt interest income, net	(7,117		)	(2.4	)	(7,335		)	(2.5	)	(8,517		)	(3.3	)
Decrease in valuation allowance applicable to net state deferred tax assets, net of federal effects	(5,785		)	(1.9	)	—			—		—			—
Increase in cash surrender value of life insurance	(4,557		)	(1.5	)	(4,612		)	(1.6	)	(4,819		)	(1.9	)
Other, net	(1,289		)	(0.4	)	(1,565		)	(0.6	)	(2,152		)	(0.8	)
Income tax expense and effective tax rate	$	93,976		31.3	%	$	91,973		31.5	%	$	77,113		30.1	%

Schedule of Deferred Tax Assets and Liabilities

The following table reflects the significant components of the deferred tax asset, net (“DTA”):



	At December 31,
(In thousands)	2015			2014
Deferred tax assets:
Allowance for loan and lease losses	$	70,937		$	65,288
Net operating loss and credit carry forwards	62,403			64,561
Compensation and employee benefit plans	52,422			47,748
Net losses on derivative instruments	11,734			12,637
Net unrealized loss on securities available for sale	4,138			—
Other	27,862			27,300
Gross deferred tax assets	229,496			217,534
Valuation allowance	(74,918		)	(80,722		)
Total deferred tax assets, net of valuation allowance	$	154,578		$	136,812
Deferred tax liabilities:
Net unrealized gain on securities available for sale	$	—		$	10,288
Equipment-financing leases	23,934			21,930
Deferred income on repurchase of debt	6,376			8,502
Intangible assets	9,165			9,242
Mortgage servicing assets	7,127			7,230
Other	6,398			5,747
Gross deferred tax liabilities	53,000			62,939
Deferred tax asset, net	$	101,578		$	73,873

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

The following table reflects a reconciliation of the beginning and ending balances for unrecognized tax benefits (“UTBs”):



	Years ended December 31,
(In thousands)	2015			2014			2013
Beginning balance	$	4,593		$	3,109		$	3,119
Additions as a result of tax positions taken during the current year	865			956			528
Additions as a result of tax positions taken during prior years	1,254			1,031			442
Reductions as a result of tax positions taken during prior years	(247		)	—			(460		)
Reductions relating to settlements with taxing authorities	(992		)	—			—
Reductions as a result of lapse of statute of limitations	(379		)	(503		)	(520		)
Ending balance	$	5,094		$	4,593		$	3,109