Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of components of provision for income taxes

	Year Ended December 31,
(dollars in thousands)	2020		2019		2018
Current:
Federal	$	55,535	$	56,450	$	69,477
State and local		21,831		23,796		27,909
Total current		77,366		80,246		97,386
Deferred:
Federal		(10,638)		14,047		(2,043)
State and local		(8,758)		3,013		(1,559)
Total deferred		(19,396)		17,060		(3,602)
Total provision for income taxes	$	57,970	$	97,306	$	93,784

Schedule of components of net deferred income tax assets and liabilities

	December 31,
(dollars in thousands)	2020		2019
Assets:
Deferred compensation expense	$	57,727	$	56,148
Allowance for credit losses and nonperforming assets		63,899		35,195
Lease liabilities		10,839		11,951
Investment securities		—		2,474
State income taxes		4,243		3,338
Total deferred income tax assets before valuation allowance		136,708		109,106
Valuation allowance		(1,675)		(1,393)
Total deferred income tax assets after valuation allowance		135,033		107,713
Liabilities:
Leases		(18,583)		(14,873)
Investment securities		(19,965)		—
Deferred income		(11,399)		(16,069)
Lease right-of-use assets		(10,736)		(11,931)
Intangible assets		(604)		(500)
Other		(19,222)		(10,570)
Total deferred income tax liabilities		(80,509)		(53,943)
Net deferred income tax assets	$	54,524	$	53,770

Schedule of reconciliation of Federal statutory to effective income tax rate

	Year Ended December 31,
	2020				2019				2018
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Federal statutory income tax expense and rate	$	51,182	21.00	%	$	80,157	21.00	%	$	75,217	21.00	%
State and local taxes, net of federal income tax benefit		10,327	4.24			21,179	5.55			20,817	5.81
Tax credits		(3,914)	(1.60)			(400)	(0.10)			(61)	(0.02)
Nontaxable income		(3,678)	(1.51)			(3,269)	(0.86)			(2,037)	(0.57)
Other		4,053	1.66			(361)	(0.10)			(152)	(0.04)
Income tax expense and effective income tax rate	$	57,970	23.79	%	$	97,306	25.49	%	$	93,784	26.18	%

Schedule of reconciliation of unrecognized tax benefits

	Year Ended December 31,
	2020						2019						2018
			Interest						Interest						Interest
			and						and						and
(dollars in thousands)	Tax		Penalties		Total		Tax		Penalties		Total		Tax		Penalties		Total
Balance at beginning of year	$	134,312	$	14,701	$	149,013	$	131,570	$	12,524	$	144,094	$	130,619	$	10,660	$	141,279
Additions for current year tax positions		1,426		—		1,426		1,038		—		1,038		2,260		—		2,260
Additions for Reorganization Transactions		—		1,479		1,479		—		986		986		—		832		832
Additions for prior years' tax positions:
New uncertain tax positions identified		—		—		—		1,894		—		1,894		—		—		—
Accrual of interest and penalties		—		2,812		2,812		—		1,280		1,280		—		1,159		1,159
Other		—		—		—		—		—		—		—		—		—
Reductions for prior years' tax positions:
Expiration of statute of limitations		(143)		(66)		(209)		(190)		(89)		(279)		(280)		(127)		(407)
Other		—		—		—		—		—		—		(1,029)		—		(1,029)
Balance at December 31,	$	135,595	$	18,926	$	154,521	$	134,312	$	14,701	$	149,013	$	131,570	$	12,524	$	144,094