Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Income Tax Disclosure [Abstract] |
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Schedule of components of income tax expense/benefit |
The following table presents the components of income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | Current income tax expense (benefit): | | | | | | | Federal | | $ | 84,249 | | | $ | 84,560 | | | $ | 107,393 | | State | | 95,939 | | | 74,252 | | | 86,578 | | Foreign | | (1,554) | | | 671 | | | (2,485) | | Total current income tax expense | | 178,634 | | | 159,483 | | | 191,486 | | Deferred income tax expense (benefit): | | | | | | | Federal | | 1,528 | | | (28,093) | | | (8,801) | | State | | 3,259 | | | (11,671) | | | (16,390) | | Foreign | | (25) | | | (1,751) | | | 3,587 | | Total deferred income tax expense (benefit) | | 4,762 | | | (41,515) | | | (21,604) | | Income tax expense | | $ | 183,396 | | | $ | 117,968 | | | $ | 169,882 | | |
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Schedule of reconciliation of the federal statutory rate to the effective tax rate |
The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2021, 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | Statutory U.S. federal tax rate | | 21.0 | % | | 21.0 | % | | 21.0 | % | U.S. state income taxes, net of U.S. federal income tax effect | | 7.4 | | | 7.2 | | | 7.1 | | | | | | | | | Tax credits and benefits, net of related expenses | | (11.3) | | | (12.4) | | | (6.8) | | Other, net | | 0.3 | | | 1.4 | | | (1.2) | | Effective tax rate | | 17.4 | % | | 17.2 | % | | 20.1 | % | |
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Schedule of temporary differences that give rise to a significant portion of deferred tax assets and liabilities |
The following table summarizes the tax effects of temporary differences that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2021 and 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | | | | | | | | December 31, | | | | | | | | 2021 | | | | | | | | 2020 | | | | | | | | | | | | | | | | | | Deferred tax assets: | | | | | | | | | | | | | | | | | Allowance for loan losses | | | | | | | | $ | 166,398 | | | | | | | | | $ | 192,534 | | Investments in qualified affordable housing partnerships, tax credit and other investments, net | | | | | | | | 14,977 | | | | | | | | | 11,174 | | Deferred compensation | | | | | | | | 23,954 | | | | | | | | | 23,604 | | Interest income on nonaccrual loans | | | | | | | | 4,192 | | | | | | | | | 5,909 | | State taxes | | | | | | | | 5,237 | | | | | | | | | 273 | | Unrealized losses on securities | | | | | | | | 37,423 | | | | | | | | | — | | Tax credit carryforwards | | | | | | | | 8,692 | | | | | | | | | — | | Premises and equipment | | | | | | | | 1,434 | | | | | | | | | 2,096 | | | | | | | | | | | | | | | | | | | Lease liabilities | | | | | | | | 31,324 | | | | | | | | | 30,554 | | Other | | | | | | | | 1,018 | | | | | | | | | 1,441 | | Total deferred tax assets | | | | | | | | $ | 294,649 | | | | | | | | | $ | 267,585 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Deferred tax liabilities: | | | | | | | | | | | | | | | | | Equipment lease financing | | | | | | | | $ | 26,607 | | | | | | | | | $ | 29,990 | | Investments in qualified affordable housing partnerships, tax credit and other investments, net | | | | | | | | 12,187 | | | | | | | | | 14,912 | | Core deposit intangibles | | | | | | | | 1,119 | | | | | | | | | 1,934 | | FHLB stock dividends | | | | | | | | 1,886 | | | | | | | | | 1,855 | | Mortgage servicing assets | | | | | | | | 1,759 | | | | | | | | | 1,675 | | Acquired debts | | | | | | | | 1,536 | | | | | | | | | 1,597 | | Prepaid expenses | | | | | | | | 1,525 | | | | | | | | | 1,194 | | | | | | | | | | | | | | | | | | | Premises and equipment | | | | | | | | — | | | | | | | | | 99 | | Unrealized gains on securities | | | | | | | | — | | | | | | | | | 21,593 | | Operating lease right-of-use assets | | | | | | | | 29,472 | | | | | | | | | 28,468 | | Other | | | | | | | | 428 | | | | | | | | | 453 | | Total deferred tax liabilities | | | | | | | | $ | 76,519 | | | | | | | | | $ | 103,770 | | Net deferred tax assets | | | | | | | | $ | 218,130 | | | | | | | | | $ | 163,815 | | |
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Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits |
The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | Beginning balance | | $ | 5,045 | | | $ | — | | | $ | 4,378 | | Additions for tax positions related to prior years | | — | | | 5,045 | | | 30,103 | | Deductions for tax positions related to prior years | | — | | | — | | | (34,481) | | | | | | | | | Ending balance | | $ | 5,045 | | | $ | 5,045 | | | $ | — | | |
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