INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income Tax Expense in Consolidated Statements of Income

The income tax expense in the consolidated statements of income consists of the following:



	For the Years Ended December 31,
(dollars in thousands)	2017			2016			2015
Current – federal	$	33,074		$	28,749		$	15,215
Current - state	5,230			3,550			1,026
Deferred - federal	3,874			2,460			(344		)
Deferred - state	(5,069		)	(1,613		)	—
Remeasurement of deferred tax assets and deferred tax liabilities at reduced federal corporate tax rate	$	13,625		$	—		$	—
	$	50,734		$	33,146		$	15,897

Schedule of Reconciliation of Differences in Company's Income Tax Expense

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:



	For the Years Ended December 31,
(dollars in thousands)	2017			2016			2015
Tax at federal income tax rate	$	43,499		$	36,836		$	19,860
Change resulting from:
Tax-exempt interest	(4,390		)	(3,916		)	(2,490		)
Increase in cash value of bank owned life insurance	(556		)	(607		)	(484		)
Excess tax benefit from stock compensation	(939		)	—			—
State income tax, net of federal benefit	(680		)	695			667
Remeasurement of deferred tax assets and deferred tax liabilities at reduced federal corporate tax rate	13,625			—			—
Other	175			138			(1,656		)
Provision for income taxes	$	50,734		$	33,146		$	15,897

Components of Deferred Income Taxes

The components of deferred income taxes are as follows:



	December 31,
(dollars in thousands)	2017		2016
Deferred tax assets
Allowance for loan losses	$	6,704	$	8,731
Deferred compensation	1,494		1,648
Deferred gain on interest rate swap	114		296
Unrealized loss on interest rate swap	80		342
Nonaccrual interest	5		17
Purchase accounting adjustments	5,631		13,444
Goodwill and intangible assets	4,909		7,488
Other real estate owned	3,203		6,244
Net operating loss tax carryforward	17,853		26,414
AMT credit carryforward	813		813
Unrealized loss on securities available for sale	508		665
Capitalized costs, accrued expenses and other	1,144		680
	42,458		66,782

Deferred tax liabilities
Depreciation and amortization	4,064		6,188
Mortgage servicing rights	1,885		1,412
Subordinated debentures	5,147		9,428
FDIC-assisted transaction adjustments	3,042		8,978
	14,138		26,006

Net deferred tax asset	$	28,320	$	40,776