Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

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


	Years ended December 31,
(In thousands)	2021		2020		2019
Current:
Federal	$	109,621	$	73,172	$	84,447
State and local	20,374		17,417		18,595
Total current	129,995		90,589		103,042
Deferred:
Federal	(9,844)		(23,799)		811
State and local	4,846		(7,437)		116
Total deferred	(4,998)		(31,236)		927

Total federal	99,777		49,373		85,258
Total state and local	25,220		9,980		18,711
Income tax expense	$	124,997	$	59,353	$	103,969

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 21.0%:


	Years ended December 31,
	2021				2020				2019
(Dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Income tax expense at federal statutory rate	$	112,111	21.0	%	$	58,795	21.0	%	$	102,205	21.0	%
Reconciliation to reported income tax expense:
SALT expense, net of federal	19,924		3.7		7,884		2.8		14,782		3.0
Tax-exempt interest income, net	(6,814)		(1.3)		(7,181)		(2.6)		(6,752)		(1.4)
Increase in cash surrender value of life insurance	(3,030)		(0.6)		(3,058)		(1.1)		(3,069)		(0.6)
Tax deficiencies (excess tax benefits), net	(1,479)		(0.3)		484		0.2		(2,251)		(0.4)
Non-deductible FDIC Deposit insurance premiums	2,064		0.4		2,172		0.8		1,904		0.4
Non-deductible merger-related expenses	3,451		0.7		—		—		—		—
Other, net	(1,230)		(0.2)		257		0.1		(2,850)		(0.6)
Income tax expense and effective tax rate	$	124,997	23.4	%	$	59,353	21.2	%	$	103,969	21.4	%

Schedule of Deferred Tax Assets and Liabilities

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


	At December 31,
(In thousands)	2021		2020
Deferred tax assets:
Allowance for loan and lease losses	$	78,905	$	93,791
Net operating loss and credit carry forwards	64,366		66,840
Compensation and employee benefit plans	22,840		27,643
Lease liabilities under operating leases	38,130		41,679



Other	12,790		8,750
Gross deferred tax assets	217,031		238,703
Valuation allowance	37,374		37,374
Total deferred tax assets, net of valuation allowance	$	179,657	$	201,329
Deferred tax liabilities:
Net unrealized gain on securities available for sale	$	1,885	$	24,364
Net unrealized gain on derivatives	2,584		7,616
ROU assets under operating leases	31,580		33,569
Equipment financing leases	21,193		38,511
Premises and equipment	879		6,735

Goodwill and other intangible assets	5,690		5,954
Other	6,441		3,294
Gross deferred tax liabilities	70,252		120,043
Deferred tax assets, net	$	109,405	$	81,286

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)	2021		2020		2019
Beginning balance	$	4,252	$	4,813	$	2,856
Additions as a result of tax positions taken during the current year	294		87		1,106
Additions as a result of tax positions taken during prior years	434		572		1,744
Reductions as a result of tax positions taken during prior years	(186)		(694)		(238)
Reductions relating to settlements with taxing authorities	(267)		(130)		(18)
Reductions as a result of lapse of statute of limitation periods	(278)		(396)		(637)
Ending balance	$	4,249	$	4,252	$	4,813