Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

At December 31, 2020, 2019 and 2018 income tax expense consisted of the following:


(Dollars in thousands)	2020		2019		2018
Current tax expense
Federal	$	137,162	$	68,984	$	95,151
State	14,532		11,095		21,523
Total current tax expense	151,694		80,079		116,674
Deferred tax (benefit) expense
Federal	(28,535)		50,522		(10,944)
State	3,000		4,076		(2,433)
Total deferred tax (benefit) expense	(25,535)		54,598		(13,377)
Total income tax expense	$	126,159	$	134,677	$	103,297

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differed from the amounts computed by applying the statutory federal income tax rate of 21% to pretax income as a result of the following:


(Dollars in thousands)	2020		2019		2018
Income taxes at federal statutory rates	$	129,755	$	124,330	$	105,758
Increase (reduction) in income taxes resulting from:
Nontaxable income on loans, leases and investments, net of nondeductible expenses	(1,581)		(1,639)		(1,796)
Excess tax benefits of compensation	1,146		1,070		371
State and local income taxes, including any change in valuation allowance, net of federal income tax benefit	13,850		11,985		15,081
Effect of federal rate change	—		—		(15,736)
Tax credits net of amortization	(5,367)		(4,474)		(2,891)
Repayment of claim of right income	(13,926)		—		—
Other, net	2,282		3,405		2,510
Total income tax expense	$	126,159	$	134,677	$	103,297

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax liability included the following components at December 31, 2020, and 2019:


(Dollars in thousands)	2020		2019
Allowance for credit losses	$	52,293	$	53,073
Operating lease liabilities	15,737		17,752

Executive separation from service agreements	8,989		12,334

Net operating loss carryforwards	9,545		11,085



Employee compensation	16,083		13,313
FDIC assisted transactions timing differences	—		8,678
Other reserves	5,376		5,001
Other	6,898		10,698
Deferred tax asset	114,921		131,934
Accelerated depreciation	14,984		51,249
Lease financing activities	15,265		8,101
Operating lease assets	15,670		17,837
Net unrealized gain on securities included in accumulated other comprehensive loss	24,857		1,821
Net deferred loan fees and costs	13,975		11,781
Intangible assets	13,012		9,148
Security, loan and debt valuations	2,051		5,767
FDIC assisted transactions timing differences	2,393		—
Pension liability	44,549		5,079
Other	10,193		15,993
Deferred tax liability	156,949		126,776
Net deferred tax (liability) asset	$	(42,028)	$	5,158

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, 2020, 2019 and 2018:


(Dollars in thousands)	2020		2019		2018
Unrecognized tax benefits at the beginning of the year	$	32,226	$	28,255	$	29,004
Additions (reductions) related to tax positions taken in prior year	153		(683)		(1,054)
Additions related to tax positions taken in current year	1,295		6,554		1,433
Settlements	(1,516)		—		—
Reductions related to lapse of statute of limitations	(783)		(1,900)		(1,128)
Unrecognized tax benefits at the end of the year	$	31,375	$	32,226	$	28,255