Federal, State & Local Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Net Deffered Tax (Liability) Assets

The following table summarizes the components of the Company’s net deferred tax (liability) asset at December 31, 2013 and 2012:

	December 31,
(in thousands)	2013			2012
Deferred Tax Assets:
Allowance for loan losses	$	82,872		$	97,844
Compensation and related benefit obligations		24,585			22,946
Acquisition accounting and fair value adjustments on securities (including OTTI)		30,356			29,645
Acquisition accounting adjustments on borrowed funds		7,609			10,055
Non-accrual interest		11,550			17,553
Acquisition-related costs		746			861
Other		9,482			15,603
Gross deferred tax assets		167,200			194,507
Valuation allowance		—			—
Deferred tax asset after valuation allowance	$	167,200		$	194,507
Deferred Tax Liabilities:
Amortizable intangibles		(3,753	)		(8,554	)
Acquisition accounting and fair value adjustments on loans (including the FDIC loss share receivable)		(35,459	)		(43,116	)
Mortgage servicing rights		(61,694	)		(52,049	)
Premises and equipment		(24,015	)		(27,868	)
Prepaid pension cost		(33,551	)		(13,345	)
Restructuring and retirement of borrowed funds		(3,883	)		(3,871	)
Leases		(5,217	)		—
Other		(5,439	)		(9,537	)
Gross deferred tax liabilities		(173,011	)		(158,340	)
Net deferred tax (liability) asset	$	(5,811	)	$	36,167

Income Tax Expense (Benefits)

The following table summarizes the Company’s income tax expense (benefit) for the years ended December 31, 2013, 2012, and 2011:

	December 31,
(in thousands)	2013			2012			2011
Federal – current	$	205,985		$	206,748		$	186,936
State and local – current		40,417			30,070			41,000
Total current		246,402			236,818			227,936
Federal – deferred		20,734			34,275			28,672
State and local – deferred		4,443			8,710			(2,068	)
Total deferred		25,177			42,985			26,604
Income tax expense reported in net income	$	271,579		$	279,803		$	254,540
Income tax expense (benefit) reported in stockholders’ equity related to:
Securities available-for-sale		(8,343	)		7,672			7,805
Employee stock plans		(1,692	)		(589	)		(2,679	)
Pension liability adjustments		20,116			(807	)		(14,993	)
Non-credit portion of OTTI losses		5,028			65			4,857
Total income taxes	$	286,688		$	286,144		$	249,530

Reconciliation of Statutory Federal Income Tax Expense Reported in Net Income to Combined Actual Income Tax Expense

The following table presents a reconciliation of statutory federal income tax expense reported in net income to combined actual income tax expense for the years ended December 31, 2013, 2012, and 2011:

	December 31,
(in thousands)	2013			2012			2011
Statutory federal income tax expense at 35%	$	261,494		$	273,318		$	257,102
State and local income taxes, net of federal income tax effect		29,159			25,207			25,306
Effect of tax deductibility of ESOP		(7,153	)		(6,910	)		(6,739	)
Non-taxable income and expense of BOLI		(10,381	)		(10,578	)		(9,848	)
Federal tax credits		(3,111	)		(2,083	)		(6,194	)
Adjustments relating to prior tax years		150			86			(5,152	)
Other, net		1,421			763			65
Total income tax expense reported in net income	$	271,579		$	279,803		$	254,540

Changes in Liability for Unrecognized Gross Tax Benefits

The following table summarizes changes in the liability for unrecognized gross tax benefits for the years ended December 31, 2013, 2012, and 2011:

	December 31,
(in thousands)	2013			2012			2011
Uncertain tax positions at beginning of year	$	24,220		$	8,922		$	13,068
Additions for tax positions relating to current-year operations		2,436			4,365			457
Additions for tax positions relating to prior tax years		6,218			11,890			—
Subtractions for tax positions relating to prior tax years		(3,641	)		(457	)		(4,603	)
Reductions in balance due to settlements		(8,983	)		(500	)		—
Uncertain tax positions at end of year	$	20,250		$	24,220		$	8,922