Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2018
	(In thousands)
Current Income Tax Expense:
Federal	$	78,161	$	113,807	$	100,466
State	27,530		34,575		69,909
Total current income tax expense	105,691		148,382		170,375
Deferred Income Tax Expense (Benefit):
Federal	(28,740)		5,062		4,746
State	(1,778)		10,860		(7,143)
Total deferred income tax expense (benefit)	(30,518)		15,922		(2,397)
Total income tax expense	$	75,173	$	164,304	$	167,978

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 2020, 2019, and 2018 to earnings before income taxes:


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Computed expected income tax (benefit) expense at federal statutory rate	$	(244,104)	$	132,917	$	132,997
State tax (benefit) expense, net of federal tax benefit	(77,934)		43,575		45,945
Goodwill impairment	407,232		—		—
Tax‑exempt interest benefit	(5,202)		(8,092)		(9,810)
Increase in cash surrender value of life insurance	(1,309)		(1,298)		(1,742)
Low income housing tax credits, net of amortization	(4,605)		(3,217)		(2,025)
Nondeductible employee compensation	2,830		4,430		2,552
Nondeductible acquisition‑related expense	—		—		71
Nondeductible FDIC premiums	2,383		1,302		1,664
Change in unrecognized tax benefits	(187)		941		(169)
Valuation allowance change	(5,288)		(32,036)		(15,721)
Expired capital loss carryforward	—		3,136		8,097
Federal rate change	—		—		1,859
State tax refunds	(2,554)		—		—
State rate and apportionment changes	4,217		19,138		3,736
Other, net	(306)		3,508		524
Recorded income tax expense	$	75,173	$	164,304	$	167,978

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,
	2020		2019
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	122,753	$	54,664
Interest on nonaccrual loans	3,335		4,550
Deferred compensation	5,298		5,809
Premises and equipment, principally due to differences in depreciation	—		3,478
Foreclosed assets valuation allowance	334		263
State tax benefit	3,108		5,721
Net operating losses	34,658		39,517

Accrued liabilities	20,477		28,158
Unrealized loss from FDIC‑assisted acquisitions	1,310		1,678

Tax mark-to-market on loans	2,155		5,052
Equity investments	2,115		5,953
Goodwill	451		5,434
Tax credits	2,232		3,426
Lease liability	38,521		40,533

Gross deferred tax assets	236,747		204,236
Valuation allowance	(41,083)		(46,371)
Deferred tax assets, net of valuation allowance	195,664		157,865
Deferred Tax Liabilities:
Core deposit and customer relationship intangibles	5,877		9,853
Deferred loan fees and costs	3,763		5,330
Unrealized gain on securities available‑for‑sale	66,098		30,438
Premises and equipment, principally due to differences in depreciation	3,120		—
FHLB stock	637		647

Subordinated debentures	18,639		20,183
Operating leases	95,026		83,878
ROU assets	33,345		36,359
Other	794		2,830
Gross deferred tax liabilities	227,299		189,518
Total net deferred tax liabilities	$	(31,635)	$	(31,653)

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	2020		2019
	(In thousands)
Balance, beginning of year	$	10,748	$	9,572
Increase based on tax positions related to prior years	879		1,733
Reductions for tax positions related to prior years	(7,813)		—
Reductions related to settlements	—		(255)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(438)		(302)
Balance, end of year	$	3,376	$	10,748

Unrecognized tax benefits that would affect the effective tax rate if recognized	$	3,376	$	6,981