Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Current and Deferred Income Tax Expense (Benefit)

The current and deferred amounts of income tax expense (benefit) were as follows:


	Years Ended December 31,
($ in Thousands)	2021		2020		2019
Current
Federal	$	57,916	$	33,020	$	50,560
State	12,035		16,193		15,327
Total current	69,951		49,213		65,887
Deferred
Federal	9,115		(25,895)		14,094
State	6,247		(3,118)		(261)
Total deferred	15,362		(29,013)		13,833
Total income tax expense	$	85,313	$	20,200	$	79,720

Schedule of Deferred Tax Assets and Liabilities

Temporary differences between the amounts reported on the financial statements and the tax bases of assets and liabilities resulted in deferred taxes. DTAs and liabilities at December 31, 2021 and 2020, included in other assets and accrued expenses and other liabilities on the consolidated balance sheets, respectively, were as follows:


($ in Thousands)	2021		2020
Deferred tax assets
Allowance for loan losses	$	72,199	$	88,967
Allowance for other losses	12,704		16,347
Accrued liabilities	4,285		3,776
Deferred compensation	31,896		27,896
Benefit of tax loss and credit carryforwards	6,245		9,789
Nonaccrual interest	1,374		1,763
Lease liability	12,954		13,328
Basis difference from equity securities and other investments	—		6,329
Net unrealized losses on AFS securities	1,989		—
Net unrealized losses on pension and postretirement benefits	1,308		9,110
Other	3,806		997
Total deferred tax assets	$	148,760	$	178,302
Valuation allowance for deferred tax assets	—		(251)
Total deferred tax assets after valuation allowance	$	148,760	$	178,051

Deferred tax liabilities
Prepaid expenses	$	61,826	$	63,113
Goodwill	22,785		21,698
Mortgage banking activities	14,382		10,403
Deferred loan fee income	7,848		9,799
State deferred taxes	1,234		2,636
Lease financing	—		116
Bank premises and equipment	20,705		30,188
Purchase accounting	11,500		12,658
Basis difference from equity securities and other investments	2,597		—
Net unrealized gains on AFS securities	—		13,568
Other	667		1,049
Total deferred tax liabilities	$	143,544	$	165,228
Net deferred tax assets (liabilities)	$	5,216	$	12,823

Summary of Valuation Allowance [Table Text Block]

The changes in the valuation allowance related to net operating losses for 2021 and 2020 were as follows:


($ in Thousands)	2021		2020
Valuation allowance for deferred tax assets, beginning of year	$	(251)	$	(251)
Decrease in current year	251		—
Valuation allowance for deferred tax assets, end of year	$	—	$	(251)

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the statutory federal tax rate. The major reasons for this difference were as follows:


	2021		2020		2019
Federal income tax rate at statutory rate	21.0	%	21.0 %		21.0 %
Increases (decreases) resulting from:
Tax-exempt interest and dividends	(3.0)	%	(3.9)	%	(3.3)	%
State income taxes (net of federal benefit)	3.8	%	3.7 %		3.5 %
Bank owned life insurance	(0.6)	%	(0.9)	%	(0.8)	%
Tax effect of tax credits and benefits, net of related expenses	(1.8)	%	(1.8)	%	(0.9)	%
Tax reserve adjustments / settlements	—	%	0.1 %		0.2 %
Net tax (benefit) expense from stock-based compensation	—	%	0.3 %		(0.2)	%


Restructuring in conjunction with ABRC sale	(0.1)	%	(13.7)	%	—	%
FDIC premium	0.5	%	0.8 %		0.5 %
Other	(0.2)	%	0.6 %		(0.4)	%
Effective income tax rate	19.6	%	6.2	%	19.6	%

Summary Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:


($ in Millions)	2021		2020
Balance at beginning of year	$	3	$	3
Subtractions for tax positions related to prior years	(1)		—


Balance at end of year	$	2	$	3