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v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Before Income Taxes and Income Tax Expense (Benefit) | The following table presents the components of income before income taxes and income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023:
|  | Year Ended December 31,
($ in thousands) |  | 2025 |  | 2024 |  | 2023
Income before income taxes: |  |  |  |  |  |
U.S. |  | $ | 1,686,561 |  |  | $ | 1,429,104 |  |  | $ | 1,425,756 |
Foreign |  | 38,899 |  |  | 52,757 |  |  | 34,014 |
Total income before income taxes |  | 1,725,460 |  |  | 1,481,861 |  |  | 1,459,770 |
Current income tax expense: |  |  |  |  |  |
Federal |  | 250,521 |  |  | 166,268 |  |  | 172,428 |
State |  | 149,291 |  |  | 153,891 |  |  | 173,080 |
Foreign |  | 8,235 |  |  | 10,399 |  |  | 2,240 |
Total current income tax expense |  | 408,047 |  |  | 330,558 |  |  | 347,748 |
Deferred income tax (benefit) expense: |  |  |  |  |  |
Federal |  | (20,242) |  |  | (6,467) |  |  | (24,319) |
State |  | 12,897 |  |  | (5,582) |  |  | (23,415) |
Foreign |  | (430) |  |  | (2,234) |  |  | (1,405) |
Total deferred income tax benefit |  | (7,775) |  |  | (14,283) |  |  | (49,139) |
Total income tax expense: |  |  |  |  |  |
Federal |  | 230,279 |  |  | 159,801 |  |  | 148,109 |
State |  | 162,188 |  |  | 148,309 |  |  | 149,665 |
Foreign |  | 7,805 |  |  | 8,165 |  |  | 835 |
Total income tax expense |  | $ | 400,272 |  |  | $ | 316,275 |  |  | $ | 298,609 |
Schedule of Reconciliation of the Federal Statutory Rate to the Effective Tax Rate | The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2025, 2024 and 2023:
|  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
($ in thousands) |  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Statutory U.S. federal tax rate |  | $ | 362,347 |  |  | 21.0 | % |  | $ | 311,191 |  |  | 21.0 | % |  | $ | 306,552 |  |  | 21.0 | %
U.S. federal |  |  |  |  |  |  |  |  |  |  |  |
Tax credits (1) |  |  |  |  |  |  |  |  |  |  |  |
Tax credits and benefits under the PAM, net of amortization |  | (29,268) |  |  | (1.7) |  |  | (26,147) |  |  | (1.8) |  |  | (4,299) |  |  | (0.3) |
Energy tax credit — solar |  | (42,406) |  |  | (2.5) |  |  | (52,722) |  |  | (3.5) |  |  | (70,364) |  |  | (4.8) |
Energy tax credit — energy storage |  | (34,408) |  |  | (2.0) |  |  | (11,143) |  |  | (0.7) |  |  | — |  |  | — |
New markets tax credit |  | — |  |  | — |  |  | — |  |  | — |  |  | (21,378) |  |  | (1.5) |
Other tax credits |  | (23,802) |  |  | (1.4) |  |  | (18,906) |  |  | (1.3) |  |  | (34,076) |  |  | (2.3) |
Changes in valuation allowance |  | 13,353 |  |  | 0.8 |  |  | — |  |  | — |  |  | — |  |  | — |
Nontaxable or nondeductible items |  |  |  |  |  |  |  |  |  |  |  |
Nondeductible FDIC insurance premiums |  | 8,474 |  |  | 0.5 |  |  | 7,719 |  |  | 0.5 |  |  | 7,007 |  |  | 0.5 |
Other nontaxable or nondeductible items |  | 4,899 |  |  | 0.3 |  |  | (15,041) |  |  | (1.0) |  |  | 217 |  |  | 0.0 |
Other, net |  | 7,549 |  |  | 0.4 |  |  | (3,879) |  |  | (0.3) |  |  | (4,544) |  |  | (0.3) |
U.S. state and local income taxes, net of U.S. federal income tax effect (2) |  | 125,638 |  |  | 7.3 |  |  | 116,091 |  |  | 7.8 |  |  | 118,236 |  |  | 8.1 |
Foreign tax effects |  | 7,805 |  |  | 0.5 |  |  | 8,165 |  |  | 0.5 |  |  | 835 |  |  | 0.1 |
Changes in unrecognized tax benefits |  | 91 |  |  | 0.0 |  |  | 947 |  |  | 0.1 |  |  | 423 |  |  | 0.0 |
Effective tax rate |  | $ | 400,272 |  |  | 23.2 | % |  | $ | 316,275 |  |  | 21.3 | % |  | $ | 298,609 |  |  | 20.5 | %
(1)Following the adoption of ASU 2023-02 on January 1, 2024, the Company expanded the PAM to include qualifying investments in new markets, historic, production and energy tax credit programs, in addition to affordable housing partnerships. (2)California state taxes made up the majority (greater than 50 percent) of state and local taxes.
Schedule of Cash Flow, Supplemental Disclosures | The following table presents the income taxes paid (net of refunds received) by the Company for the years ended December 31, 2025, 2024 and 2023:
|  | Year Ended December 31,
($ in thousands) |  | 2025 |  | 2024 |  | 2023
Federal |  | $ | 65,981 |  |  | $ | 68,371 |  |  | $ | 140,000 |
State |  |  |  |  |  |
California |  | 120,000 |  |  | 102,061 |  |  | 100,000 |
New York |  | 67,001 |  |  | 59,049 |  |  | 36,732 |
Other states |  | 12,080 |  |  | 11,278 |  |  | 14,953 |
Foreign |  | 13,120 |  |  | 6,186 |  |  | — |
Total |  | $ | 278,182 |  |  | $ | 246,945 |  |  | $ | 291,685 |
Schedule of Temporary Differences that Give Rise to a Significant Portion of Deferred Tax Assets and Liabilities | 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, 2025 and 2024:
|  |  |  |  |  |  |  | December 31,
($ in thousands) |  |  |  |  |  |  |  | 2025 |  |  |  |  |  |  |  | 2024
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses and nonperforming assets valuation allowance |  |  |  |  |  |  |  | $ | 251,494 |  |  |  |  |  |  |  |  | $ | 233,879 |
Net unrealized losses on AFS debt and transferred securities |  |  |  |  |  |  |  | 142,141 |  |  |  |  |  |  |  |  | 223,814 |
Stock compensation and other accrued compensation |  |  |  |  |  |  |  | 46,825 |  |  |  |  |  |  |  |  | 41,118 |
Lease liabilities |  |  |  |  |  |  |  | 40,714 |  |  |  |  |  |  |  |  | 27,644 |
Tax credit and capital loss carryforwards |  |  |  |  |  |  |  | 51,193 |  |  |  |  |  |  |  |  | 11,122 |
Basis difference in investments |  |  |  |  |  |  |  | 16,430 |  |  |  |  |  |  |  |  | 17,708 |
Nonaccrual loans’ interest income |  |  |  |  |  |  |  | 8,306 |  |  |  |  |  |  |  |  | 8,809 |
State taxes |  |  |  |  |  |  |  | 6,548 |  |  |  |  |  |  |  |  | 5,808 |
FDIC special assessment charge |  |  |  |  |  |  |  | 2,615 |  |  |  |  |  |  |  |  | 16,843 |
Other |  |  |  |  |  |  |  | 13,435 |  |  |  |  |  |  |  |  | 14,665 |
Total deferred tax assets |  |  |  |  |  |  |  | $ | 579,701 |  |  |  |  |  |  |  |  | $ | 601,410 |
Valuation allowance |  |  |  |  |  |  |  | (13,353) |  |  |  |  |  |  |  |  | — |
Total deferred tax assets, net of valuation allowance |  |  |  |  |  |  |  | $ | 566,348 |  |  |  |  |  |  |  |  | $ | 601,410 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  |  |  |  |  |  | $ | 37,225 |  |  |  |  |  |  |  |  | $ | 25,647 |
Basis difference in investments |  |  |  |  |  |  |  | 26,203 |  |  |  |  |  |  |  |  | 25,587 |
Net unrealized gains on derivative hedges |  |  |  |  |  |  |  | 14,704 |  |  |  |  |  |  |  |  | — |
Equipment lease financing |  |  |  |  |  |  |  | 7,206 |  |  |  |  |  |  |  |  | 10,395 |
Other |  |  |  |  |  |  |  | 7,006 |  |  |  |  |  |  |  |  | 26,437 |
Total deferred tax liabilities |  |  |  |  |  |  |  | $ | 92,344 |  |  |  |  |  |  |  |  | $ | 88,066 |
Net deferred tax assets |  |  |  |  |  |  |  | $ | 474,004 |  |  |  |  |  |  |  |  | $ | 513,344 |
Schedule of Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023:
|  | Year Ended December 31,
($ in thousands) |  | 2025 |  | 2024 |  | 2023
Beginning balance |  | $ | 4,670 |  |  | $ | 1,193 |  |  | $ | 477 |
Additions for tax positions related to prior years |  | — |  |  | 2,698 |  | (1) | 459 |
Deductions for tax positions related to prior years |  | (446) |  |  | — |  |  | — |
Additions for tax positions related to current year |  | 547 |  |  | 779 |  |  | 257 |
Settlements with taxing authorities |  | (2,019) |  | (2) | — |  |  | — |
Ending balance |  | $ | 2,752 |  |  | $ | 4,670 |  |  | $ | 1,193 |
(1)In 2024, the increase in positions related to prior years primarily related to proposed adjustments resulting from examination of the Company’s state tax returns. (2)In 2025, the Company settled an issue related to the examination of the Company’s prior years’ state tax returns.

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