Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense for the years indicated:



	Year Ended December 31,
	2018			2017		2016
	(In thousands)
Current Income Tax Expense:
Federal	$	100,466		$	74,769	$	101,530
State	69,909			38,933		52,551
Total current income tax expense	170,375			113,702		154,081
Deferred Income Tax Expense:
Federal	4,746			63,463		55,857
State	(7,143		)	19,748		(4,168		)
Total deferred income tax expense	(2,397		)	83,211		51,689
Total income tax expense	$	167,978		$	196,913	$	205,770

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable federal statutory income tax rates of 21% for 2018 and 35% for 2017 and 2016 to earnings before income taxes:



	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Computed expected income tax expense at federal statutory rate	$	132,997		$	194,156		$	195,278
State tax expense, net of federal tax benefit	45,945			33,729			32,896
Tax‑exempt interest benefit	(9,810		)	(15,510		)	(13,992		)
Increase in cash surrender value of life insurance	(1,742		)	(1,853		)	(1,544		)
Low income housing tax credits, net of amortization	(2,025		)	(2,054		)	(1,439		)
Nondeductible employee compensation	2,552			1,781			1,257
Nondeductible acquisition‑related expense	71			1,608			—
Nondeductible FDIC premiums	1,664			—			—
Change in unrecognized tax benefits	(169		)	1,157			(2,268		)
Valuation allowance change	(15,721		)	(13,071		)	(8,689		)
Expired capital loss carryforward	8,097			—			—
Federal rate change	1,859			(1,156		)	—
Other, net	4,260			(1,874		)	4,271
Recorded income tax expense	$	167,978		$	196,913		$	205,770

Schedule of Deferred Tax Assets and Liabilities

The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated:



	December 31,
	2018			2017
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	58,375		$	60,349
Interest on nonaccrual loans	4,389			8,519
Deferred compensation	6,015			6,174
Premises and equipment, principally due to differences in depreciation	4,506			3,789
Foreclosed assets valuation allowance	263			248
State tax benefit	6,570			3,781
Net operating losses	68,026			70,269
Capital loss carryforwards	4,212			14,264
Accrued liabilities	35,750			25,986
Unrealized loss from FDIC‑assisted acquisitions	3,559			4,654
Unrealized loss on securities available-for-sale	2,435			—
Tax mark-to-market	—			9,207
Equity investments	4,896			7,549
Goodwill	10,418			15,641
Tax credits	5,237			5,651
Other	4,887			—
Gross deferred tax assets	219,538			236,081
Valuation allowance	(78,407		)	(94,120		)
Deferred tax assets, net of valuation allowance	141,131			141,961
Deferred Tax Liabilities:
Core deposit and customer relationship intangibles	15,159			21,529
Deferred loan fees and costs	7,275			9,735
Unrealized gain on securities available‑for‑sale	—			15,107
FHLB stock	658			744
Tax mark-to-market	1,636			—
Subordinated debentures	23,164			24,518
Operating leases	75,750			65,286
Other	—			7,303
Gross deferred tax liabilities	123,642			144,222
Total net deferred tax asset (liability)	$	17,489		$	(2,261	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company's unrecognized tax benefits for the years indicated:



	Year Ended December 31,
Unrecognized Tax Benefits	2018			2017
	(In thousands)
Balance, beginning of year	$	10,209		$	9,985
Increase based on tax positions related to prior years	1,278			5,725
Reductions for tax positions related to prior years	—			(767		)
Reductions related to settlements	(684		)	(3,795		)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(1,231		)	(939		)
Balance, end of year	$	9,572		$	10,209

Unrecognized tax benefits that would have impacted the effective tax rate if recognized	$	5,806		$	6,443