Entity information:
Income Taxes
The components of income tax expense from operations for the years ended December 31, 2017, 2016 and 2015 were as follows:
(In thousands)
Current
Deferred
Total
Year ended December 31, 2017:
 
 
 
U.S. federal
$
89,154

$
12,190

$
101,344

State and local
7,735

1,427

9,162

Total
$
96,889

$
13,617

$
110,506

Year ended December 31, 2016:
 
 
 
U.S. federal
$
116,753

$
(2,036
)
$
114,717

State and local
9,457

(23
)
9,434

Total
$
126,210

$
(2,059
)
$
124,151

Year ended December 31, 2015:
 
 
 
U.S. federal
$
102,607

$
7,084

$
109,691

State and local
6,551

348

6,899

Total
$
109,158

$
7,432

$
116,590



The components of income tax (benefit) expense recorded directly to stockholders’ equity for the years ended December 31, 2017, 2016 and 2015 were as follows:
(In thousands)
2017
2016
2015
Unrealized gain (loss) on securities available for sale
$
2,104

$
(13,952
)
$
(19,634
)
Accumulated pension (benefit) loss
(184
)
778

1,478

Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes
—

(3,390
)
(2,132
)
Income tax (benefit) expense allocated to stockholders’ equity
$
1,920

$
(16,564
)
$
(20,288
)


Significant components of the Company’s deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows:
(In thousands)
2017
2016
Deferred tax assets:
 
 
Loans, principally due to allowance for loan losses
$
40,341

$
61,233

Equity-based compensation
8,201

12,633

Deferred compensation
5,647

7,998

Private equity investments
5,473

9,667

Accrued expenses
5,245

16,638

Unearned fee income
3,701

3,819

Other
4,430

6,071

Total deferred tax assets
73,038

118,059

Deferred tax liabilities:
 
 
Equipment lease financing
45,825

71,355

Unrealized gain on securities available for sale
13,603

18,572

Land, buildings and equipment
8,592

10,375

Undistributed earnings of subsidiaries
7,094

23

Intangibles
5,732

9,105

Other
6,569

8,765

Total deferred tax liabilities
87,415

118,195

Net deferred tax liabilities
$
(14,377
)
$
(136
)


Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the total deferred tax assets.

As a result of the Tax Cuts and Jobs Act enacted on December 22, 2017, the Company revalued its deferred tax assets and liabilities using the highest maximum corporate tax rate of 21%. This change was reported as a reduction of deferred tax expense. The Company also adopted ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," on January 1, 2017. This adoption requires all excess tax benefits and tax deficiencies arising from share-based award payments to be recognized as income tax expense or benefit in the statements of income, while in previous periods these benefits and deficiencies were recognized in equity. In 2017, net excess tax benefits resulted from share-based award payments. The effects on federal tax expense of both of these items are shown in the reconciliation below.

A reconciliation between the expected federal income tax expense using the federal statutory tax rate of 35% and the Company’s actual income tax expense for 2017, 2016 and 2015 is provided in the table below. The effective tax rate is calculated by dividing income taxes by income before income taxes less the non-controlling interest expense.
(In thousands)
2017
2016
2015
Computed “expected” tax expense
$
150,461

$
139,840

$
133,112

Increase (decrease) in income taxes resulting from:
 
 
 
Tax-exempt interest, net of cost to carry
(20,295
)
(20,033
)
(19,083
)
Contribution of appreciated securities
(10,864
)
—

—

Tax reform enactment
(6,753
)
—

—

Share-based award payments
(6,613
)
—

—

State and local income taxes, net of federal tax benefit
5,955

6,132

4,484

Tax deductible dividends on allocated shares held by the Company’s ESOP
(966
)
(1,044
)
(1,093
)
Other
(419
)
(744
)
(830
)
Total income tax expense
$
110,506

$
124,151

$
116,590



The gross amount of unrecognized tax benefits was $1.2 million at both December 31, 2017 and 2016, and the total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $785 thousand and $798 thousand, respectively. The activity in the accrued liability for unrecognized tax benefits for the years ended December 31, 2017 and 2016 was as follows:
(In thousands)
2017
2016
Unrecognized tax benefits at beginning of year
$
1,228

$
1,278

Gross increases – tax positions in prior period
5

—

Gross decreases – tax positions in prior period
—

(1
)
Gross increases – current-period tax positions
268

269

Lapse of statute of limitations
(293
)
(318
)
Unrecognized tax benefits at end of year
$
1,208

$
1,228


The Company and its subsidiaries are subject to income tax by federal, state and local government taxing authorities. Tax years 2014 through 2017 remain open to examination for U.S. federal income tax as well as income tax in major state taxing jurisdictions.