Income Taxes (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company’s provision for income taxes and effective tax rate

The differences between the provision for federal income taxes computed at the federal statutory income tax rate and the amounts recorded in the consolidated financial statements were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2016			2015			2016			2015
Tax at statutory rate	$	5,016		$	11,923		$	29,400		$	30,844
Changes resulting from:
Tax-exempt interest income	(1,321		)	(1,033		)	(3,599		)	(2,809		)
State taxes, net of federal benefit	(803		)	—			(803		)	—
Change in valuation allowance	(29		)	—			(29		)	—
Bank-owned life insurance adjustments	(169		)	—			(524		)	—
Director plan change in control	(525		)	—			(525		)	—
Income tax credits, net	(413		)	(992		)	(2,428		)	(1,851		)
Nondeductible transaction expenses	2,100			—			2,100			525
Other, net	(256		)	(298		)	708			91
Provision for federal income taxes	$	3,600		$	9,600		$	24,300		$	26,800
Effective federal income tax rate	25.1		%	28.2		%	28.9		%	30.4		%

Significant components of deferred tax assets and liabilities

The significant components of the deferred tax assets and liabilities at September 30, 2016 and December 31, 2015 were as follows:



(Dollars in thousands)	September 30, 2016			December 31, 2015
Deferred tax assets:
Allowance for loan losses	$	44,233		$	24,863
Acquisition-related fair value adjustments	65,596			29,280
Accrued stock-based compensation	18,353			3,240
Loss and tax credit carry forwards	55,921			6,850
Acquisition built in loss carry forwards	31,316			—
Depreciation	3,900			4,333
Nonaccrual interest	8,064			4,994
Accrued expense	18,400			13,296
Other	17,861			5,951
Total deferred tax assets	263,644			92,807
Deferred tax liabilities:
Loan servicing rights	18,021			3,893
Core deposit intangible assets	9,938			7,379
Goodwill	6,350			5,808
Other	7,829			4,742
Total deferred tax liabilities	42,138			21,822
Net deferred tax asset before valuation allowance	221,506			70,985
Valuation allowance	(2,502		)	(795		)
Net deferred tax asset	$	219,004		$	70,190