Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are as follows:

	2020		2019		2018
	(in thousands)
Current tax expense:
Federal	$	38,396	$	32,610	$	35,783
State	7,389		5,204		5,352
	45,785		37,814		41,135
Deferred tax (benefit) expense:
Federal	(18,131)		(1,271)		(16,841)
State	(3,460)		1,106		283
	(21,591)		(165)		(16,558)
Total income tax expense	$	24,194	$	37,649	$	24,577

Schedule of Effective Income Tax Rate Reconciliation

The differences between the effective income tax rate and the federal statutory income tax rate are as follows:

	2020		2019		2018
Statutory tax rate	21.0	%	21.0	%	21.0	%
Tax credit investments	(5.7)		(4.6)		(6.1)
Tax-exempt income	(4.9)		(3.9)		(4.1)
Bank owned life insurance	(0.7)		(0.4)		(0.4)
State income taxes, net of federal benefit	1.1		0.2		2.0
Change in valuation allowance	—		1.8		(0.1)
Re-measurement of net DTA due to the Tax Act	—		—		(0.3)
Executive compensation	—		—		0.1
FDIC Premium	0.3		—		—
Penalties	0.2		—		—
Other, net	0.7		0.2		(1.6)
Effective income tax rate	12.0	%	14.3	%	10.5	%

Schedule of Deferred Tax Assets and Liabilities

The net DTA recorded by the Corporation is included in other assets and consists of the following tax effects of temporary differences as of December 31:

	2020		2019
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	67,059	$	37,081
Tax credit carryforwards	39,294		43,133
State loss carryforwards	20,401		16,324
Tax credit investments	10,159		6,799
Other accrued expenses	9,801		8,797
Deferred compensation	8,486		7,752
Stock-based compensation	3,289		2,930
Postretirement and defined benefit plans	1,553		599
Other	12,107		4,246
Total gross deferred tax assets	172,149		127,661
Deferred tax liabilities:
Equipment lease financing	44,216		42,273
Unrealized holding gains on AFS securities	23,978		4,223
Premises and equipment	8,876		6,282
MSRs	6,414		8,686
Acquisition premiums/discounts	5,466		5,266
Intangible assets	1,205		1,136
Other	15,811		12,387
Total gross deferred tax liabilities	105,966		80,253
Net deferred tax asset, before valuation allowance	66,183		47,408
Valuation allowance	(20,401)		(16,324)
Net deferred tax asset	$	45,782	$	31,084

Summary of Income Tax Contingencies

The following table summarizes the changes in unrecognized tax benefits for the years ended December 31:

	2020		2019		2018
	(in thousands)
Balance at beginning of year	$	2,517	$	2,726	$	2,550
Current period tax positions	95		292		593
Lapse of statute of limitations	(461)		(501)		(417)
Balance at end of year	$	2,151	$	2,517	$	2,726

Summary of Affordable Housing Tax Credit Investments And Other Credit Investments

The following table presents the balances of the Corporation's TCIs and related unfunded commitments as of December 31:

		2020		2019
Included in other assets:		( in thousands)
Affordable housing tax credit investments, net		$	152,203	$	153,351
Other tax credit investments, net		59,224		64,354
	Total TCIs, net	$	211,427	$	217,705
Included in other liabilities:
Unfunded affordable housing tax credit commitments		$	31,562	$	16,684
Other tax credit liabilities		49,491		55,105
	Total unfunded tax credit commitments and liabilities	$	81,053	$	71,789

The following table presents other information relating to the Corporation's TCIs for the years ended December 31:

		2020		2019		2018
		( in thousands)
Components of income taxes:
Affordable housing tax credits and other tax benefits		$	(28,777)	$	(30,642)	$	(30,721)
Other tax credit investment credits and tax benefits		(4,163)		(4,542)		(6,385)
Amortization of affordable housing investments, net of tax benefit		20,429		22,184		21,569
Deferred tax expense		921		954		1,341
	Total reduction in income tax expense	$	(11,590)	$	(12,046)	$	(14,196)
Amortization of TCIs:
Affordable housing tax credits investment		$	4,087	$	3,344	$	3,355
Other tax credit investment amortization		2,039		2,677		8,094
	Total amortization of TCIs	$	6,126	$	6,021	$	11,449