Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019		2018			2017
	(In thousands)
Current Income Tax Expense:
Federal	$	113,807	$	100,466		$	74,769
State	34,575		69,909			38,933
Total current income tax expense	148,382		170,375			113,702
Deferred Income Tax Expense (Benefit):
Federal	5,062		4,746			63,463
State	10,860		(7,143		)	19,748
Total deferred income tax expense (benefit)	15,922		(2,397		)	83,211
Total income tax expense	$	164,304	$	167,978		$	196,913

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 2019 and 2018 and 35% for 2017 to earnings before income taxes:



	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Computed expected income tax expense at federal statutory rate	$	132,917		$	132,997		$	194,156
State tax expense, net of federal tax benefit	43,575			45,945			33,729
Tax‑exempt interest benefit	(8,092		)	(9,810		)	(15,510		)
Increase in cash surrender value of life insurance	(1,298		)	(1,742		)	(1,853		)
Low income housing tax credits, net of amortization	(3,217		)	(2,025		)	(2,054		)
Nondeductible employee compensation	4,430			2,552			1,781
Nondeductible acquisition‑related expense	—			71			1,608
Nondeductible FDIC premiums	1,302			1,664			—
Change in unrecognized tax benefits	941			(169		)	1,157
Valuation allowance change	(32,036		)	(15,721		)	(13,071		)
Expired capital loss carryforward	3,136			8,097			—
Federal rate change	—			1,859			(1,156		)
State rate and apportionment changes	19,138			3,736			(3,735		)
Other, net	3,508			524			1,861
Recorded income tax expense	$	164,304		$	167,978		$	196,913

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,
	2019			2018
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	54,664		$	58,375
Interest on nonaccrual loans	4,550			4,389
Deferred compensation	5,809			6,015
Premises and equipment, principally due to differences in depreciation	3,478			4,506
Foreclosed assets valuation allowance	263			263
State tax benefit	5,721			6,570
Net operating losses	39,517			68,026
Capital loss carryforwards	—			4,212
Accrued liabilities	28,158			35,750
Unrealized loss from FDIC‑assisted acquisitions	1,678			3,559
Unrealized loss on securities available-for-sale	—			2,435
Tax mark-to-market	5,052			—
Equity investments	5,953			4,896
Goodwill	5,434			10,418
Tax credits	3,426			5,237
Lease liability	40,533			—
Other	—			4,887
Gross deferred tax assets	204,236			219,538
Valuation allowance	(46,371		)	(78,407		)
Deferred tax assets, net of valuation allowance	157,865			141,131
Deferred Tax Liabilities:
Core deposit and customer relationship intangibles	9,853			15,159
Deferred loan fees and costs	5,330			7,275
Unrealized gain on securities available‑for‑sale	30,438			—
FHLB stock	647			658
Tax mark-to-market	—			1,636
Subordinated debentures	20,183			23,164
Operating leases	83,878			75,750
ROU assets	36,359			—
Other	2,830			—
Gross deferred tax liabilities	189,518			123,642
Total net deferred tax (liabilities) assets	$	(31,653	)	$	17,489

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	2019			2018
	(In thousands)
Balance, beginning of year	$	9,572		$	10,209
Increase based on tax positions related to prior years	1,733			1,278
Reductions related to settlements	(255		)	(684		)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(302		)	(1,231		)
Balance, end of year	$	10,748		$	9,572

Unrecognized tax benefits that would have impacted the effective tax rate if recognized	$	6,981		$	5,806