Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

At December 31, income tax expense consisted of the following:



(Dollars in thousands)	2016		2015			2014
Current tax expense
Federal	$	84,946	$	105,367		$	84,430
State	7,493		16,111			13,941
Total current tax expense	92,439		121,478			98,371
Deferred tax expense (benefit)
Federal	23,144		(2,758		)	(30,658		)
State	10,002		3,308			(2,681		)
Total deferred tax (benefit) expense	33,146		550			(33,339		)
Total income tax expense	$	125,585	$	122,028		$	65,032

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differed from the amounts computed by applying the federal income tax rate of 35 percent to pretax income as a result of the following:



(Dollars in thousands)	2016			2015			2014
Income taxes at federal statutory rates	$	122,874		$	116,345		$	71,258
Increase (reduction) in income taxes resulting from:
Nontaxable income on loans, leases and investments, net of nondeductible expenses	(2,901		)	(3,020		)	(1,832		)
State and local income taxes, including change in valuation allowance, net of federal income tax benefit	11,372			12,622			7,319
Acquisition stock settlement	(98		)	—			(10,185		)
Tax credits net of amortization	(4,138		)	(3,060		)	(2,896		)
Other, net	(1,524		)	(859		)	1,368
Total income tax expense	$	125,585		$	122,028		$	65,032

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset included the following components at December 31:



(Dollars in thousands)	2016		2015
Allowance for loan and lease losses	$	80,939	$	78,878
Pension liability	15,679		7,206
Executive separation from service agreements	14,278		9,856
State net operating loss carryforward	—		21
Federal net operating loss carryforward from Cordia acquisition	5,019		—
Unrealized loss on cash flow hedge	—		537
Net unrealized loss on securities included in accumulated other comprehensive loss	26,832		9,379
Accelerated depreciation	133		13,195
FDIC assisted transactions timing differences	52,579		66,456
Other reserves	10,504		10,772
Other	26,663		29,279
Deferred tax asset	232,626		225,579
Lease financing activities	11,651		15,492
Net deferred loan fees and costs	10,867		6,051
Intangible assets	6,335		2,040
Security, loan and debt valuations	22,656		31,486
Other	8,501		12,026
Deferred tax liability	60,010		67,095
Net deferred tax asset	$	172,616	$	158,484

Schedule of Unrecognized Tax Benefits

The following table provides a rollforward of Bancshares’ gross unrecognized tax benefits, excluding interest and penalties, during the years ended December 31:



(Dollars in thousands)	2016			2015			2014
Unrecognized tax benefits at the beginning of the year	$	5,975		$	3,865		$	2,823
Reductions related to tax positions taken in prior year	(327		)	(79		)	—
Additions related to tax positions taken in current year	23,231			2,189			1,042
Settlements	—			—			—
Unrecognized tax benefits at the end of the year	$	28,879		$	5,975		$	3,865