Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31 are as follows:



	Years ended December 31,
(in thousands)	2016		2015			2014
Current:
Federal	$	17,005	$	22,916		$	9,399
State and local	1,734		2,798			195
Total current	18,739		25,714			9,594
Deferred:
Federal	5,959		(5,266		)	3,908
State and local	1,304		(497		)	369
Total deferred	7,263		(5,763		)	4,277
Total income tax expense	$	26,002	$	19,951		$	13,871

Schedule of Income Tax Rate Reconciliation

A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate of 35% in 2016, 2015, and 2014 to income before income taxes and the amounts reflected in the consolidated statements of operations is as follows:



	Years ended December 31,
(in thousands)	2016			2015			2014
Income tax expense at statutory rate	$	26,194		$	20,440		$	14,365
Increase (reduction) in income tax resulting from:
Tax-exempt income, net	(945		)	(931		)	(857		)
State and local income taxes, net	1,673			1,414			741
Bank-owned life insurance, net	(544		)	(462		)	(535		)
Non-deductible expenses	263			259			290
Change in estimated rate for deferred taxes	302			—			—
Tax benefits of LIHTC investments, net	(181		)	(179		)	(158		)
Other, net	(760		)	(590		)	25
Total income tax expense	$	26,002		$	19,951		$	13,871

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows:



	Years ended December 31,
(in thousands)	2016		2015
Deferred tax assets:
Allowance for loan losses	$	16,496	$	16,705
Basis difference on PCI assets, net	5,551		8,806
Basis difference on Other real estate	317		328
Deferred compensation	4,217		4,509
Goodwill and other intangible assets	5,520		6,973
Accrued compensation	899		2,222
Unrealized losses on securities available for sale	1,019		—
Other, net	925		907
Total deferred tax assets	34,944		40,450

Deferred tax liabilities:
Unrealized gains on securities available for sale	—		183
State tax credits held for sale, net of economic hedge	376		594
Core deposit intangibles	817		1,178
Total deferred tax liabilities	1,193		1,955
Net deferred tax asset	$	33,751	$	38,495

Schedule of Unrecognized Tax Benefits

The activity in the gross liability for unrecognized tax benefits was as follows:



(in thousands)	2016			2015			2014
Balance at beginning of year	$	1,359		$	1,884		$	1,257
Additions based on tax positions related to the current year	239			230			401
Additions for tax positions of prior years	39			46			523
Reductions for tax positions of prior years	—			(437		)	—
Settlements or lapse of statute of limitations	(457		)	(364		)	(297		)
Balance at end of year	$	1,180		$	1,359		$	1,884