Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

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


	Years ended December 31,
(In thousands)	2019		2018		2017
Current:
Federal	$	84,447	$	58,334	$	96,364
State and local	18,595		13,409		11,061
Total current	103,042		71,743		107,425
Deferred:
Federal	811		8,508		39,568
State and local	116		964		(48,642)
Total deferred	927		9,472		(9,074)

Total federal	85,258		66,842		135,932
Total state and local	18,711		14,373		(37,581)
Income tax expense	$	103,969	$	81,215	$	98,351

Schedule of Effective Income Tax Rate Reconciliation

he following table reflects a reconciliation of reported income tax expense to the amount that would result from applying the federal statutory rate of 21.0% in 2019, and 2018, and 35.0% and 2017:


	Years ended December 31,
	2019						2018						2017
(Dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Income tax expense at federal statutory rate	$	102,205	21.0	%	$	92,743	21.0	%	$	123,826	35.0	%
Reconciliation to reported income tax expense:
SALT expense, net of federal	14,782		3.0		11,354		2.6		8,189		2.3
Tax-exempt interest income, net	(6,752)		(1.4)		(6,475)		(1.5)		(10,826)		(3.1)
Increase in cash surrender value of life insurance	(3,069)		(0.6)		(3,069)		(0.7)		(5,120)		(1.4)
Excess tax benefits, net	(2,251)		(0.4)		(4,483)		(1.0)		(6,349)		(1.8)
Non-deductible FDIC Deposit insurance premiums	1,904		0.4		2,215		0.5		—		—
SALT DTA adjustments, net of federal	—		—		—		—		(28,724)		(8.1)
Tax Act impacts, net	—		—		(10,982)		(2.5)		20,891		5.9
Other, net	(2,850)		(0.6)		(88)		—		(3,536)		(1.0)
Income tax expense and effective tax rate	$	103,969	21.4	%	$	81,215	18.4	%	$	98,351	27.8	%

Schedule of Deferred Tax Assets and Liabilities

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


	At December 31,
(In thousands)	2019		2018
Deferred tax assets:
Allowance for loan and lease losses	$	53,851	$	54,390
Net operating loss and credit carry forwards	69,827		70,808
Compensation and employee benefit plans	24,518		29,623
Lease liabilities under operating leases	45,923		—
Net unrealized loss on securities available for sale	—		25,060
Other	9,521		14,388
Gross deferred tax assets	203,640		194,269
Valuation allowance	38,181		38,181
Total deferred tax assets, net of valuation allowance	$	165,459	$	156,088
Deferred tax liabilities:
Net unrealized gain on securities available for sale	$	6,430	$	—
ROU assets under operating leases	40,908		—
Equipment financing leases	31,332		28,140
Premises and equipment	7,838		10,293
Loan origination costs, net	6,816		9,608
Goodwill and other intangible assets	6,172		6,293
Other	3,988		5,238
Gross deferred tax liabilities	103,484		59,572
Deferred tax assets, net	$	61,975	$	96,516

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)	2019		2018		2017
Beginning balance	$	2,856	$	3,595	$	3,847
Additions as a result of tax positions taken during the current year	1,106		249		584
Additions as a result of tax positions taken during prior years	1,744		71		7
Reductions as a result of tax positions taken during prior years	(238)		(474)		(61)
Reductions relating to settlements with taxing authorities	(18)		(97)		(392)
Reductions as a result of lapse of statute of limitation periods	(637)		(488)		(390)
Ending balance	$	4,813	$	2,856	$	3,595