Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of the Consolidated Income Tax Expense

The components of the consolidated income tax expense are as follows:

	For the Year Ended December 31,
(In thousands)	2018		2017		2016
Current:
Federal	$	36,862	$	33,799	$	24,394
State		3,791		2,458		2,166
Total current expense		40,653		36,257		26,560
Deferred:
Federal		3,791		44,009		5,439
State		673		380		541
Total deferred expense		4,464		44,389		5,980
Total income tax expense	$	45,117	$	80,646	$	32,540

Reconciliation of Total Income Tax Expense

Income tax expense as shown in the consolidated statements of income differed from the amounts computed by applying the U.S. federal income statutory rate to income before income taxes. The statutory rate is 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016. A reconciliation of the differences is presented below:

	For the Year Ended December 31,
(In thousands)	2018			2017			2016
Computed income tax expense at statutory rate	$	44,389		$	64,050		$	34,410
Effects of tax reform		(284	)	$	19,022			—
Tax exempt interest, net		(1,609	)		(3,988	)		(2,744	)
BOLI income		(717	)		(1,148	)		(1,023	)
State tax expense		3,527			2,279			1,760
Goodwill writeoff on sale of subsidiary assets		2,254			—			—
One-time bad debt deduction on legacy loan portfolio		(5,565	)		—			—
Other, net		3,122			431			137
Total income tax expense	$	45,117		$	80,646		$	32,540

Significant Components of the Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:

	As of December 31,
(In thousands)	2018		2017
Deferred income tax assets:
Allowance for credit losses	$	20,256	$	18,464
Deferred compensation		3,338		3,440
Accrued compensation		3,630		2,506
Net operating loss carryforwards		8,893		9,859
Alternative minimum tax credit carryover		978		978
Unrealized loss on securities, net		7,910		1,271
Unrealized loss on derivative instruments		5,496		4,912
Other		3,588		6,198
Total deferred income tax assets		54,089		47,628
Deferred income tax liabilities:
Difference in book and tax basis of intangibles		1,573		1,927
Other		6,239		4,213
Excess of book basis in assets acquired and tax liabilities assumed over book carrying value:
Intangibles		9,473		7,122
Other		3,580		3,592
Total deferred income tax liabilities		20,865		16,854
Net deferred income tax asset	$	33,224	$	30,774

Reconciliation of the Beginning and Ending Amount of Unrecognized Income Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact):

	For the Year Ended December 31,
(In thousands)	2018			2017			2016
Unrecognized income tax benefits	$	894		$	944		$	—
Increases for tax positions related to:
Prior years		—			9			422
Current year		479			394			522
Decreases for tax positions related to:
Prior years		(101	)		(453	)		—
Current year		—			—			—
Settlement with taxing authorities		—			—			—
Expiration of applicable statutes of limitations		—			—			—
Unrecognized income tax benefits	$	1,272		$	894		$	944