Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

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


	Years ended December 31,
(In thousands)	2020		2019		2018
Current:
Federal	$	73,172	$	84,447	$	58,334
State and local	17,417		18,595		13,409
Total current	90,589		103,042		71,743
Deferred:
Federal	(23,799)		811		8,508
State and local	(7,437)		116		964
Total deferred	(31,236)		927		9,472

Total federal	49,373		85,258		66,842
Total state and local	9,980		18,711		14,373
Income tax expense	$	59,353	$	103,969	$	81,215

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%:


	Years ended December 31,
	2020				2019				2018
(Dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Income tax expense at federal statutory rate	$	58,795	21.0	%	$	102,205	21.0	%	$	92,743	21.0	%
Reconciliation to reported income tax expense:
SALT expense, net of federal	7,884		2.8		14,782		3.0		11,354		2.6
Tax-exempt interest income, net	(7,181)		(2.6)		(6,752)		(1.4)		(6,475)		(1.5)
Increase in cash surrender value of life insurance	(3,058)		(1.1)		(3,069)		(0.6)		(3,069)		(0.7)
Tax deficiencies (excess tax benefits), net	484		0.2		(2,251)		(0.4)		(4,483)		(1.0)
Non-deductible FDIC Deposit insurance premiums	2,172		0.8		1,904		0.4		2,215		0.5

Tax Act impacts, net (1)	—		—		—		—		(10,982)		(2.5)
Other, net	257		0.1		(2,850)		(0.6)		(88)		—
Income tax expense and effective tax rate	$	59,353	21.2	%	$	103,969	21.4	%	$	81,215	18.4	%

Schedule of Deferred Tax Assets and Liabilities

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


	At December 31,
(In thousands)	2020		2019
Deferred tax assets:
Allowance for loan and lease losses	$	93,791	$	53,851
Net operating loss and credit carry forwards	66,840		69,827
Compensation and employee benefit plans	27,643		24,518
Lease liabilities under operating leases	41,679		45,923

Deferred loan fees, net	2,397		—
Net unrealized loss on derivatives	—		1,650
Other	6,353		7,871
Gross deferred tax assets	238,703		203,640
Valuation allowance	37,374		38,181
Total deferred tax assets, net of valuation allowance	$	201,329	$	165,459
Deferred tax liabilities:
Net unrealized gain on securities available for sale	$	24,364	$	6,430
Net unrealized gain on derivatives	7,616		—
ROU assets under operating leases	33,569		40,908
Equipment financing leases	38,511		31,332
Premises and equipment	6,735		7,838
Loan origination costs, net	—		6,816
Goodwill and other intangible assets	5,954		6,172
Other	3,294		3,988
Gross deferred tax liabilities	120,043		103,484
Deferred tax assets, net	$	81,286	$	61,975

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)	2020		2019		2018
Beginning balance	$	4,813	$	2,856	$	3,595
Additions as a result of tax positions taken during the current year	87		1,106		249
Additions as a result of tax positions taken during prior years	572		1,744		71
Reductions as a result of tax positions taken during prior years	(694)		(238)		(474)
Reductions relating to settlements with taxing authorities	(130)		(18)		(97)
Reductions as a result of lapse of statute of limitation periods	(396)		(637)		(488)
Ending balance	$	4,252	$	4,813	$	2,856