Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
	(In thousands)
Current Tax Expense:
Federal	$	63,833	$	131,559	$	78,161
State	44,734		54,744		27,530
Total current tax expense	108,567		186,303		105,691
Deferred Tax Expense (Benefit):
Federal	35,789		15,799		(28,740)
State	(401)		13,273		(1,778)
Total deferred tax expense (benefit)	35,388		29,072		(30,518)
Total income tax expense	$	143,955	$	215,375	$	75,173

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 2022, 2021, and 2020 to earnings before income taxes:


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Computed expected income tax (benefit) expense at federal statutory rate	$	119,189	$	172,690	$	(244,104)
State tax expense (benefit), net of federal tax benefit	36,310		55,682		(77,934)
Goodwill impairment	—		—		407,232
Tax‑exempt interest benefit	(12,293)		(12,312)		(5,202)
Increase in cash surrender value of life insurance	(1,246)		(1,367)		(1,309)
Low income housing tax credits, net of amortization	(7,158)		(6,430)		(4,605)
Nondeductible employee compensation	6,067		4,660		2,830

Nondeductible FDIC premiums	4,257		2,535		2,383
Change in unrecognized tax benefits	(2,017)		(860)		(187)
Valuation allowance change	1,805		(16,201)		(5,288)


State tax refunds	—		—		(2,554)
State rate and apportionment changes	(2,189)		16,330		4,217
Other, net	1,230		648		(306)
Recorded income tax expense	$	143,955	$	215,375	$	75,173

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,
	2022		2021
	(In thousands)
Deferred Tax Assets:
Book allowance for loan losses in excess of tax specific charge-offs	$	80,653	$	76,384
Interest on nonaccrual loans	2,649		3,150
Deferred compensation	5,011		5,209

Foreclosed assets valuation allowance	298		289
State tax benefit	6,743		6,768
Net operating losses	20,178		19,646

Accrued liabilities	31,336		29,057
Unrealized loss from FDIC‑assisted acquisitions	876		886
Unrealized loss on securities available-for-sale	224,680		—
Unrealized loss on securities held-to-maturity	78,330		—
Tax mark-to-market on loans	—		6,543
Equity investments	2,322		—


Lease liability	41,038		39,095
Core deposit and customer relationship intangibles	1,428		—
Other	2,837		—
Gross deferred tax assets	498,379		187,027
Valuation allowance	(26,687)		(24,882)
Deferred tax assets, net of valuation allowance	471,692		162,145
Deferred Tax Liabilities:
Core deposit and customer relationship intangibles	—		1,746
Deferred loan fees and costs	1,341		2,337
Unrealized gain on securities available‑for‑sale	—		24,972
Premises and equipment, principally due to differences in depreciation	4,186		1,466
FHLB stock	602		613
Tax mark-to-market on loans	1,711		—
Subordinated debt	15,776		17,110
Equity investments	—		5,475
Goodwill	9,229		6,166
Operating leases	121,978		86,000
ROU assets	35,021		34,129
Other	—		1,712
Gross deferred tax liabilities	189,844		181,726
Total net deferred tax assets (liabilities)	$	281,848	$	(19,581)

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	2022		2021
	(In thousands)
Balance, beginning of year	$	2,555	$	3,376

Reductions for tax positions related to prior years	—		(698)

Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(2,148)		(123)
Balance, end of year	$	407	$	2,555

Unrecognized tax benefits that would affect the effective tax rate if recognized	$	407	$	2,555