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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023 is summarized as follows:
 Years Ended December 31,
(In thousands)
202520242023
Current income taxes:
Federal$174,157 $178,075 $165,518 
State67,604 52,882 62,948 
Foreign7,961 10,076 13,696 
Total current income taxes$249,722 $241,033 $242,162 
Deferred income taxes:
Federal$43,997 $2,914 $(8,245)
State942 7,927 (9,750)
Foreign(98)170 (1,712)
Total deferred income taxes$44,841 $11,011 $(19,707)
Total income tax expense$294,563 $252,044 $222,455 

The Company’s income before income taxes in 2025, 2024 and 2023 includes $19.4 million, $27.3 million and $42.5 million, respectively, of foreign income attributable to its Canadian subsidiary.
The tax effects of certain transactions are recorded directly to shareholders’ equity rather than income tax expense. The tax effect of fair value adjustments on securities available-for-sale and derivative instruments in cash flow hedges are recorded directly to shareholders’ equity as part of other comprehensive income (loss) and are reflected on the Consolidated Statements of Comprehensive Income. The tax effect of unrealized gains and losses on certain foreign currency transactions is also recorded in shareholders’ equity as part of other comprehensive income (loss).
A reconciliation of the differences between taxes computed using the statutory Federal income tax rate and actual income tax expense is as follows:
 Years Ended December 31,
(Dollars in thousands)
202520242023
Amount%Amount%Amount%
Income tax expense using the statutory Federal income tax rate of 21% on income before taxes$234,866 21.0 %$198,889 21.0 %$177,467 21.0 %
Increase (decrease) from:
State taxes, net of federal tax benefit (1)
54,151 4.848,039 5.142,027 5.0
Nontaxable and nondeductible items, net:
Tax-exempt interest, net of interest expense disallowance(5,266)(0.5)(5,338)(0.6)(5,348)(0.6)
Income earned on bank owned life insurance(1,304)(0.1)(1,139)(0.1)(1,013)(0.1)
Excess tax benefits on share based compensation(3,179)(0.3)(3,621)(0.4)(2,314)(0.3)
Meals, entertainment and related expenses2,900 0.32,823 0.32,439 0.3
FDIC insurance expense9,319 0.88,602 0.97,713 0.9
Non-deductible compensation expense2,822 0.22,587 0.32,147 0.3
Tax benefits related to tax credits, net(5,820)(0.5)(4,636)(0.5)(3,950)(0.5)
Foreign tax effects5,333 0.56,187 0.73,378 0.4
Other, net741 0.1(349)(0.1)(91)(0.1)
Income tax expense$294,563 26.3 %$252,044 26.6 %$222,455 26.3 %
(1)State taxes in Illinois made up the majority (greater than 50 percent) of the tax effect in this category.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:
(In thousands)
20252024
Deferred tax assets:
Allowance for credit losses$119,728 $113,648 
Net unrealized losses on securities included in other comprehensive income103,838 151,886 
Right-of-use liability36,989 39,691 
Deferred compensation36,670 34,850 
Stock-based compensation15,571 14,741 
Loans8,625 12,104 
Net unrealized losses on derivatives included in other comprehensive income— 4,032 
Federal net operating loss carryforward402 549 
Other14,605 8,017 
Total gross deferred tax assets336,428 379,518 
Deferred tax liabilities:
Equipment Leasing219,927 165,363 
Capitalized servicing rights50,363 52,298 
Goodwill and intangible assets39,829 42,733 
Premises and equipment35,378 38,554 
Right-of-use asset30,680 32,651 
Net unrealized gains on derivatives included in other comprehensive income17,449 — 
Deferred loan fees and costs10,264 7,889 
Other3,076 2,660 
Total gross deferred tax liabilities406,966 342,148 
Net deferred tax (liabilities) assets$(70,538)$37,370 

Management has determined that a valuation allowance is not required for the deferred tax assets at December 31, 2025 because it is more likely than not that these assets could be realized through future reversals of existing taxable temporary differences, tax planning strategies and future taxable income. This conclusion is based on the Company’s historical earnings, its current level of earnings and prospects for continued growth and profitability.
The Company has Federal net operating loss (“NOL”) carryforwards of $1.9 million that begin to expire in 2029 through 2035 and are subject to IRC Section 382 annual limitation. The NOL carryforwards were a result of acquisitions.
The Company accounts for uncertainties in income taxes in accordance with ASC 740, “Income Taxes.” At December 31, 2025, 2024, and 2023, the Company had no unrecognized tax benefits related to uncertain tax positions that, if recognized, would impact the effective tax rate. If the Company were to record interest or penalties associated with uncertain tax positions, the interest or penalties would be included in income tax expense.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in numerous state jurisdictions and in Canada. In the ordinary course of business, we are routinely subject to audit by the taxing authorities of these jurisdictions. Currently, the Company’s U.S. federal income tax returns are open and subject to audit for the 2022 tax return year forward, and in general, the Company’s state income tax returns are open and subject to audit from the 2022 tax return year forward, subject to individual state statutes of limitation. The Company has extended the statute of limitations on certain state income tax returns for tax years 2017 through 2021 due to an ongoing audit. The Company’s Canadian subsidiary’s Canadian income tax returns are also subject to audit for the 2022 tax return year forward.

The income taxes paid by the Company for the years ended December 31, 2025, 2024 and 2023 is summarized as follows:

Years Ended December 31,
(In thousands)202520242023
Federal$148,000 $173,000 $165,873 
State and Local:
Illinois33,378 30,502 38,002 
All Other States33,119 25,373 26,469 
Foreign7,915 23,976 1,309 
Total$222,412 $252,851 $231,653