Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021		2020		2019
	(In thousands)
Current Income Tax Expense:
Federal	$	131,559	$	78,161	$	113,807
State	54,744		27,530		34,575
Total current income tax expense	186,303		105,691		148,382
Deferred Income Tax Expense (Benefit):
Federal	15,799		(28,740)		5,062
State	13,273		(1,778)		10,860
Total deferred income tax expense (benefit)	29,072		(30,518)		15,922
Total income tax expense	$	215,375	$	75,173	$	164,304

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 2021, 2020, and 2019 to earnings before income taxes:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Computed expected income tax (benefit) expense at federal statutory rate	$	172,690	$	(244,104)	$	132,917
State tax (benefit) expense, net of federal tax benefit	55,682		(77,934)		43,575
Goodwill impairment	—		407,232		—
Tax‑exempt interest benefit	(12,312)		(5,202)		(8,092)
Increase in cash surrender value of life insurance	(1,367)		(1,309)		(1,298)
Low income housing tax credits, net of amortization	(6,430)		(4,605)		(3,217)
Nondeductible employee compensation	4,660		2,830		4,430

Nondeductible FDIC premiums	2,535		2,383		1,302
Change in unrecognized tax benefits	(860)		(187)		941
Valuation allowance change	(16,201)		(5,288)		(32,036)
Expired capital loss carryforward	—		—		3,136

State tax refunds	—		(2,554)		—
State rate and apportionment changes	16,330		4,217		19,138
Other, net	648		(306)		3,508
Recorded income tax expense	$	215,375	$	75,173	$	164,304

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,
	2021		2020
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	76,384	$	122,753
Interest on nonaccrual loans	3,150		3,335
Deferred compensation	5,209		5,298

Foreclosed assets valuation allowance	289		334
State tax benefit	6,768		3,108
Net operating losses	19,646		34,658

Accrued liabilities	29,057		20,477
Unrealized loss from FDIC‑assisted acquisitions	886		1,310

Tax mark-to-market on loans	6,543		2,155
Equity investments	—		2,115
Goodwill	—		451
Tax credits	—		2,232
Lease liability	39,095		38,521

Gross deferred tax assets	187,027		236,747
Valuation allowance	(24,882)		(41,083)
Deferred tax assets, net of valuation allowance	162,145		195,664
Deferred Tax Liabilities:
Core deposit and customer relationship intangibles	1,746		5,877
Deferred loan fees and costs	2,337		3,763
Unrealized gain on securities available‑for‑sale	24,972		66,098
Premises and equipment, principally due to differences in depreciation	1,466		3,120
FHLB stock	613		637

Subordinated debt	17,110		18,639
Equity investments	5,475		—
Goodwill	6,166		—
Operating leases	86,000		95,026
ROU assets	34,129		33,345
Other	1,712		794
Gross deferred tax liabilities	181,726		227,299
Total net deferred tax liabilities	$	(19,581)	$	(31,635)

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	2021		2020
	(In thousands)
Balance, beginning of year	$	3,376	$	10,748
Increase based on tax positions related to prior years	—		879
Reductions for tax positions related to prior years	(698)		(7,813)

Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(123)		(438)
Balance, end of year	$	2,555	$	3,376

Unrecognized tax benefits that would affect the effective tax rate if recognized	$	2,555	$	3,376