Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

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



	Years ended December 31,
(In thousands)	2017			2016		2015
Current:
Federal	$	96,364		$	73,194	$	97,575
State and local	11,061			5,429		10,970
Total current	107,425			78,623		108,545
Deferred:
Federal	39,568			12,542		(7,279		)
State and local	(48,642		)	5,158		(8,234		)
Total deferred	(9,074		)	17,700		(15,513		)

Total federal	135,932			85,736		90,296
Total state and local	(37,581		)	10,587		2,736
Income tax expense	$	98,351		$	96,323	$	93,032

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,
	2017					2016					2015
(Dollars in thousands)	Amount			Percent		Amount			Percent		Amount			Percent
Income tax expense at federal statutory rate	$	123,826		35.0	%	$	106,208		35.0	%	$	104,217		35.0	%
Reconciliation to reported income tax expense:
SALT expense, net of federal	8,189			2.3		6,882			2.3		7,563			2.5
Tax-exempt interest income, net	(10,826		)	(3.1	)	(8,917		)	(2.9	)	(7,117		)	(2.4	)
SALT DTA adjustments, net of federal	(28,724		)	(8.1	)	—			—		(5,785		)	(1.9	)
Tax Act impacts, net	20,891			5.9		—			—		—			—
Excess tax benefits, net	(6,349		)	(1.8	)	—			—		—			—
Increase in cash surrender value of life insurance	(5,120		)	(1.4	)	(5,166		)	(1.7	)	(4,557		)	(1.5	)
Other, net	(3,536		)	(1.0	)	(2,684		)	(1.0	)	(1,289		)	(0.5	)
Income tax expense and effective tax rate	$	98,351		27.8	%	$	96,323		31.7	%	$	93,032		31.2	%

Schedule of Deferred Tax Assets and Liabilities

The following table reflects the significant components of the DTAs, net:



	At December 31,
(In thousands)	2017			2016
Deferred tax assets:
Allowance for loan and lease losses	$	51,203		$	77,908
Net operating loss and credit carry forwards	71,813			64,644
Compensation and employee benefit plans	25,023			46,433
Net losses on derivative instruments	3,767			8,624
Net unrealized loss on securities available for sale	9,548			9,898
Other	12,273			17,682
Gross deferred tax assets	173,627			225,189
Valuation allowance	(38,292		)	(71,474		)
Total deferred tax assets, net of valuation allowance	$	135,335		$	153,715
Deferred tax liabilities:
Equipment-financing leases	$	27,955		$	41,910
Deferred income on repurchase of debt	1,275			4,251
Intangible assets	6,164			9,952
Mortgage servicing assets	4,445			7,313
Other	2,866			5,898
Gross deferred tax liabilities	42,705			69,324
Deferred tax assets, net	$	92,630		$	84,391

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 of unrecognized tax benefits (UTBs):



	Years ended December 31,
(In thousands)	2017			2016			2015
Beginning balance	$	3,847		$	5,094		$	4,593
Additions as a result of tax positions taken during the current year	584			613			865
Additions as a result of tax positions taken during prior years	7			—			1,254
Reductions as a result of tax positions taken during prior years	(61		)	(625		)	(247		)
Reductions relating to settlements with taxing authorities	(392		)	(693		)	(992		)
Reductions as a result of lapse of statute of limitation periods	(390		)	(542		)	(379		)
Ending balance	$	3,595		$	3,847		$	5,094