Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense included in the consolidated statements of income for the years ended December 31, 2016, 2015, and 2014 as presented:

(in thousands)	2016		2015	2014
Current
Federal	$	7,329	6,163	5,140
State	5,501		4,424	150
Total current income tax expense	12,830		10,587	5,290
Deferred
Federal	117,463		108,877	92,360
State	11,374		13,027	9,660
Total deferred income tax expense	128,837		121,904	102,020
Total income tax expense	$	141,667	132,491	107,310

Note: The table above does not reflect amounts relating to share-based compensation transactions that were charged or credited directly to shareholders' equity. The amounts charged or credited to shareholder's equity for the years ended December 31, 2016, 2015, and 2014 were a decrease of $790 thousand, an increase of $1.7 million, and a decrease of $3.2 million, respectively.

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the differences for the years ended December 31, 2016, 2015 and 2014 as presented:

	Years Ended December 31,
(in thousands)	2016			2015		2014
Income tax expense at statutory federal income tax rate	$	135,957		125,501		105,896
Increase (decrease) resulting from:
State income tax expense, net of federal income tax benefit	13,256			12,870		8,014
Bank-owned life insurance	(3,402		)	(2,885	)	(2,928	)
Change in valuation allowance	(2,055		)	(589	)	(2,273	)
General business tax credits	(1,213		)	(1,173	)	(1,123	)
Tax-exempt income	(825		)	(835	)	(1,076	)
Other, net	(51		)	(398	)	800
Total income tax expense	$	141,667		132,491		107,310
Effective tax rate	36.5		%	36.9	%	35.5	%

Schedule of Deferred Tax Assets and Liabilities

Significant portions of the deferred tax assets and liabilities at December 31, 2016 and 2015 are presented:

(in thousands)	2016			2015
Deferred tax assets
Net operating loss carryforwards	$	167,072		308,617
Allowance for loan losses	100,419			103,884
Tax credit carryforwards	67,031			59,434
Employee benefits and deferred compensation	21,024			21,177
Net unrealized losses on investment securities available for sale	19,413			3,072
Non-performing loan interest	19,137			16,604
Deferred revenue	18,639			16,529
Other	19,759			18,573
Total gross deferred tax assets	432,494			547,890
Less valuation allowance	(9,658		)	(11,713	)
Total deferred tax assets	422,836			536,177
Deferred tax liabilities
Fixed assets held for sale	(8,179		)	(5,985	)
Purchase accounting adjustments	(5,765		)	(811	)
Excess tax over financial statement depreciation	(5,343		)	(8,564	)
Ownership interest in partnerships	(5,242		)	(4,537	)
Other	(2,951		)	(4,332	)
Total gross deferred tax liabilities	(27,480		)	(24,229	)
Net deferred tax asset	$	395,356		511,948

Note: The table above includes $3.1 million in net deferred tax liabilities from the acquisition of Global One on October 1, 2016. Please refer to Note 2 - "Acquisition" of this Report for more information on the acquisition of Global One.

Schedule of Net Operating Loss and Tax Credit Carryforward

Federal and state NOL and tax credit carryforwards as of December 31, 2016 are summarized in the following table.

Tax Carryforwards	As of December 31, 2016
(in thousands)	Expiration Dates	Deferred Tax Asset Balance		Valuation Allowance		Net Deferred Tax Asset Balance	Pre-Tax Earnings Necessary to Realize
Net operating losses - federal(3)	2031-2036	$	126,351	—		126,351	361,004
General business credits - federal	2028-2036	8,383		—		8,383	NA(1)
Net operating losses - states	2025-2029	13,244		—		13,244	1,370,624
Net operating losses - states(3)	2030-2036	36,148		—		36,148	1,165,627
Other credits - states	2017-2020	12,422		(9,658	)	2,764	NA(1)
Other credits - states	2021-2026	2,239		—		2,239	NA(1)
Alternative minimum tax credits - federal	None	43,037		—		43,037	NA(2)
Other credits - states	None	950		—		950	NA(1)

⁽¹⁾ N/A indicates credits are not measured on a pre-tax earnings basis.

⁽²⁾ Alternative minimum tax credits can be carried forward indefinitely.

(3) $3.0 million of acquired NOLs from Global One acquisition have a utilization limitation.

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact).

	Years Ended December 31,
(in thousands)	2016			2015		2014
Balance at January 1,	$	12,745		13,023		912
Additions based on income tax positions related to current year	—			—		—
Additions for income tax positions of prior years *	1,811			8		12,318
Additions from acquisition	608			—		—
Deductions for income tax positions of prior years	—			—		(52	)
Statute of limitation expirations	(419		)	(286	)	(155	)
Settlements	—			—		—
Balance at December 31,	$	14,745		12,745		13,023

*Includes deferred tax benefits that could reduce future tax liabilities.