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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table presents the components of income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019:
($ in thousands) |  | Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Current income tax expense (benefit): |  |  |  |  |  |
Federal |  | $ | 84,249 |  |  | $ | 84,560 |  |  | $ | 107,393 |
State |  | 95,939 |  |  | 74,252 |  |  | 86,578 |
Foreign |  | (1,554) |  |  | 671 |  |  | (2,485) |
Total current income tax expense |  | 178,634 |  |  | 159,483 |  |  | 191,486 |
Deferred income tax expense (benefit): |  |  |  |  |  |
Federal |  | 1,528 |  |  | (28,093) |  |  | (8,801) |
State |  | 3,259 |  |  | (11,671) |  |  | (16,390) |
Foreign |  | (25) |  |  | (1,751) |  |  | 3,587 |
Total deferred income tax expense (benefit) |  | 4,762 |  |  | (41,515) |  |  | (21,604) |
Income tax expense |  | $ | 183,396 |  |  | $ | 117,968 |  |  | $ | 169,882 |
The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2021, 2020 and 2019:
|  | Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Statutory U.S. federal tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
U.S. state income taxes, net of U.S. federal income tax effect |  | 7.4 |  |  | 7.2 |  |  | 7.1 |
Tax credits and benefits, net of related expenses |  | (11.3) |  |  | (12.4) |  |  | (6.8) |
Other, net |  | 0.3 |  |  | 1.4 |  |  | (1.2) |
Effective tax rate |  | 17.4 | % |  | 17.2 | % |  | 20.1 | %
The following table summarizes the tax effects of temporary differences that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2021 and 2020:
($ in thousands) |  |  |  |  |  |  |  | December 31,
|  |  |  |  |  |  | 2021 |  |  |  |  |  |  |  | 2020
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  |  |  |  |  |  |  | $ | 166,398 |  |  |  |  |  |  |  |  | $ | 192,534 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net |  |  |  |  |  |  |  | 14,977 |  |  |  |  |  |  |  |  | 11,174 |
Deferred compensation |  |  |  |  |  |  |  | 23,954 |  |  |  |  |  |  |  |  | 23,604 |
Interest income on nonaccrual loans |  |  |  |  |  |  |  | 4,192 |  |  |  |  |  |  |  |  | 5,909 |
State taxes |  |  |  |  |  |  |  | 5,237 |  |  |  |  |  |  |  |  | 273 |
Unrealized losses on securities |  |  |  |  |  |  |  | 37,423 |  |  |  |  |  |  |  |  | — |
Tax credit carryforwards |  |  |  |  |  |  |  | 8,692 |  |  |  |  |  |  |  |  | — |
Premises and equipment |  |  |  |  |  |  |  | 1,434 |  |  |  |  |  |  |  |  | 2,096 |
Lease liabilities |  |  |  |  |  |  |  | 31,324 |  |  |  |  |  |  |  |  | 30,554 |
Other |  |  |  |  |  |  |  | 1,018 |  |  |  |  |  |  |  |  | 1,441 |
Total deferred tax assets |  |  |  |  |  |  |  | $ | 294,649 |  |  |  |  |  |  |  |  | $ | 267,585 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equipment lease financing |  |  |  |  |  |  |  | $ | 26,607 |  |  |  |  |  |  |  |  | $ | 29,990 |
Investments in qualified affordable housing partnerships, tax credit and other investments, net |  |  |  |  |  |  |  | 12,187 |  |  |  |  |  |  |  |  | 14,912 |
Core deposit intangibles |  |  |  |  |  |  |  | 1,119 |  |  |  |  |  |  |  |  | 1,934 |
FHLB stock dividends |  |  |  |  |  |  |  | 1,886 |  |  |  |  |  |  |  |  | 1,855 |
Mortgage servicing assets |  |  |  |  |  |  |  | 1,759 |  |  |  |  |  |  |  |  | 1,675 |
Acquired debts |  |  |  |  |  |  |  | 1,536 |  |  |  |  |  |  |  |  | 1,597 |
Prepaid expenses |  |  |  |  |  |  |  | 1,525 |  |  |  |  |  |  |  |  | 1,194 |
Premises and equipment |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  | 99 |
Unrealized gains on securities |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  | 21,593 |
Operating lease right-of-use assets |  |  |  |  |  |  |  | 29,472 |  |  |  |  |  |  |  |  | 28,468 |
Other |  |  |  |  |  |  |  | 428 |  |  |  |  |  |  |  |  | 453 |
Total deferred tax liabilities |  |  |  |  |  |  |  | $ | 76,519 |  |  |  |  |  |  |  |  | $ | 103,770 |
Net deferred tax assets |  |  |  |  |  |  |  | $ | 218,130 |  |  |  |  |  |  |  |  | $ | 163,815 |
The tax benefits of deductible temporary differences and tax carryforwards are recorded as an asset to the extent that management assesses the utilization of such temporary differences and carryforwards to be more-likely-than-not. A valuation allowance is used, as needed, to reduce the deferred tax assets to the amount that is more-likely-than-not to be realized. Evidence the Company considers includes the Company’s ability to generate future taxable income, implement tax-planning strategies (as defined in ASC 740, Income Taxes), and utilize taxable income from prior carryback years (if such carryback is permitted under the applicable tax law), as well as future reversals of existing taxable temporary differences. The Company expects to have sufficient taxable income in future years to fully realize its deferred tax assets. The Company also performed an overall assessment by weighing all positive evidence against all negative evidence and concluded that it is more-likely-than-not that all of the benefits of the deferred tax assets will be realized, with the exception of the deferred tax assets related to certain state net operating losses carryforwards. No valuation allowance was recorded as of both December 31, 2021 and 2020. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019:
($ in thousands) |  | Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Beginning balance |  | $ | 5,045 |  |  | $ | — |  |  | $ | 4,378 |
Additions for tax positions related to prior years |  | — |  |  | 5,045 |  |  | 30,103 |
Deductions for tax positions related to prior years |  | — |  |  | — |  |  | (34,481) |
Ending balance |  | $ | 5,045 |  |  | $ | 5,045 |  |  | $ | — |
The Company believes that adequate provisions have been recorded for all income tax uncertainties consistent with the standards of ASC 740-10. The Company recognizes interest and penalties, as applicable, related to the underpayment of income taxes as a component of Income tax expense on the Consolidated Statement of Income. The Company recorded a charge of $921 thousand of interest for the year ended December 31, 2021. In comparison, a charge of $564 thousand of interest and a reversal of $6.3 million of interest and penalties were recorded for the years ended December 31, 2020 and 2019, respectively. Total accrued interest included in Accrued expenses and other liabilities on the Consolidated Balance Sheet was $921 thousand and $564 thousand as of December 31, 2021 and 2020, respectively. Beginning with its 2012 tax year, the Company has executed a Memorandum of Understanding (“MOU”) with the Internal Revenue Service (“IRS”) to voluntarily participate in the IRS Compliance Assurance Process (“CAP”). Under the CAP, the IRS audits the tax position of the Company to identify and resolve any tax issues that may arise throughout the tax year. The objective of the CAP is to resolve issues in a timely and contemporaneous manner and eliminate the need for a lengthy post-filing examination. The Company has executed a MOU with the IRS for the 2019 tax year. For federal tax purposes, the IRS had completed the 2017 and earlier tax years’ corporate income tax return examination. For the 2020 and 2021 tax years, the Company was accepted by the IRS as a CAP Bridge Year. The Company is also currently being audited by the states of Missouri, California, and New York, as well as by the city of New York. The Company does not believe that the outcome of unresolved issues or claims in any tax jurisdiction is likely to be material to the Company’s financial position, cash flows or results of operations. The Company believes that adequate provisions have been recorded for all income tax uncertainties consistent with ASC 740, Income Taxes as of December 31, 2021.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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