Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of the Company's Provision for Income Taxes

The components of the Company’s provision for income taxes for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, were as follows:

(dollars in thousands)	2020			2019			2018
Current:
Federal	$	65,840		$	60,902		$	45,464
State		12,066			14,426			11,434
Total Current		77,906			75,328			56,898
Deferred:
Federal		(31,783	)		(9,630	)		(2,172	)
State		(10,803	)		(5,785	)		(4,102	)
Total Deferred		(42,586	)		(15,415	)		(6,274	)
Provision for Income Taxes	$	35,320		$	59,913		$	50,624

Schedule of Significant Components of the Company's Deferred Tax Liabilities and Assets

As of December 31, 2020, and December 31, 2019, significant components of the Company’s deferred tax liabilities and assets were as follows:

	December 31,
(dollars in thousands)	2020			2019
Deferred Tax Liabilities:
Accelerated Depreciation	$	(8,042	)	$	(4,064	)
Accrued Pension Cost		(11,270	)		(11,270	)
Federal Home Loan Bank Stock		(3,416	)		(3,416	)
Lease Transactions		(41,726	)		(48,487	)
Operating Lease Right-of-Use Assets		(26,387	)		(26,731	)
Energy Tax Credits		(674	)		(2,370	)
Net Unrealized Gains on Investments Securities		(18,407	)		(2,751	)
Investment in Variable Interest Entities		(2,725	)		(3,783	)
Deferred Loan Fees		(4,736	)		(6,498	)
Originated Mortgage Servicing Rights		(5,579	)		(6,840	)
Other		(1,124	)		(1,597	)
Gross Deferred Tax Liabilities		(124,086	)		(117,807	)
Deferred Tax Assets:
Allowance for Credit Losses		57,840			30,951
Minimum Pension Liability		13,430			13,980
Accrued Expenses		17,629			18,159
Postretirement Benefit Obligations		7,980			8,130
Capital Lease Expenses		2,168			2,171
Operating Lease Liabilities		28,473			28,685
Restricted Stock		3,669			4,369
Deductible State and Local Taxes		3,366			3,558
Low Income Housing Investments		3,648			2,157
Other		6,204			6,236
Gross Deferred Tax Assets Before Valuation Allowance		144,407			118,396
Valuation Allowance		(3,597	)		(2,460	)
Gross Deferred Tax Assets After Valuation Allowance		140,810			115,936
Net Deferred Tax Assets (Liabilities)	$	16,724		$	(1,871	)

Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2020, December 31, 2019, and December 31, 2018:

	2020			2019			2018
Statutory Federal Income Tax Rate		21.00	%		21.00	%		21.00	%
Increase (Decrease) in Income Tax Rate Resulting From:
State Taxes, Net of Federal Income Tax		0.81			2.53			2.29
Tax Reserve Adjustments		0.07			(0.03	)		—
Low-Income Housing Investments- Federal		0.82			0.60			0.22
Investment Tax Credits- Federal		(1.24	)		(0.84	)		(1.04	)
Bank-Owned Life Insurance		(0.82	)		(0.51	)		(0.55	)
Tax-Exempt Income		(0.50	)		(0.53	)		(1.29	)
Excess Tax Benefits - Stock Compensation		(0.07	)		(0.22	)		(0.34	)
Leveraged Lease		(0.56	)		(1.54	)		(0.83	)
Tax Reform Effects		—			—			(0.75	)
Other		(0.83	)		0.50			0.02
Effective Tax Rate		18.68	%		20.96	%		18.73	%

Schedule of Reconciliation of the Company's Liability for Unrecognized Tax Benefits

The following presents a reconciliation of the Company’s liability for UTBs for the years ended December 31, 2020, December 31, 2019, and December 31, 2018:

(dollars in thousands)	2020			2019			2018
Unrecognized Tax Benefits at Beginning of Year	$	6,120		$	5,541		$	5,292
Gross Increases, Related to Tax Positions Taken in a Prior Period		374			673			157
Gross Increases, Related to Current Period Tax Positions		222			715			885
Lapse of Statute of Limitations		(1,313	)		(809	)		(793	)
Unrecognized Tax Benefits at End of Year	$	5,403		$	6,120		$	5,541