Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Income Tax Expense Allocated Based on Separate Tax Return Basis

Income tax expense, allocated based on a separate tax return basis, consists of the following:


Year Ended December 31	2015			2014		2013
Current income taxes:
Federal taxes	$	69,572		$	18,111	$	33,614
State taxes		989			396		(116	)

		70,561			18,507		33,498
Deferred income taxes:
Federal taxes		63			44,113		11,258
State taxes		(631	)		—		—

		(568	)		44,113		11,258

	$	69,993		$	62,620	$	44,756

Summary of Deferred Tax Assets and Liabilities from Tax Effects of Temporary Differences

The following table presents the tax effects of temporary differences that give rise to deferred tax assets and liabilities:


December 31	2015			2014
Deferred tax assets:
Allowance for credit losses	$	50,414		$	44,613
Discount on purchased loans		28,503			31,787
Net operating loss/tax credit carryforwards		16,487			15,367
Deferred compensation		8,515			7,785
Securities impairments		252			412
Pension and other defined benefit plans		8,539			6,871
Net unrealized securities losses		1,301			—
Other		8,020			9,503

Total		122,031			116,338
Valuation allowance		(17,179	)		(15,505	)

Total deferred tax assets		104,852			100,833

Deferred tax liabilities:
Loan costs		(2,966	)		(1,497	)
Depreciation		(10,836	)		(11,533	)
Prepaid expenses		(628	)		(705	)
Amortizable intangibles		(12,940	)		(13,842	)
Lease financing		(6,763	)		(7,302	)
Debt discharge income deferral		(2,042	)		(2,829	)
Originated mortgage servicing rights		(1,238	)		(2,721	)
Other		(1,928	)		—

Total deferred tax liabilities		(39,341	)		(40,429	)

Net deferred tax assets	$	65,511		$	60,404

Summary of Reconciliation Between the Statutory Tax Rate and Actual Effective Tax Rate

The following table provides a reconciliation between the statutory tax rate and the actual effective tax rate:


Year Ended December 31	2015			2014			2013
Statutory tax rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		0.8			0.1			0.2
Valuation allowance reversal		(0.8	)		—			—
Tax-exempt interest		(2.2	)		(1.8	)		(2.9	)
Cash surrender value of life insurance		(1.3	)		(1.3	)		(1.8	)
Tax credits		(1.1	)		(1.4	)		(2.4	)
Other items		0.1			(0.3	)		(0.6	)

Actual effective tax rate		30.5	%		30.3	%		27.5	%

Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and the federal income tax benefit of unrecognized state tax benefits) is as follows:


Year Ended December 31	2015			2014
Balance at beginning of year	$	401		$	660
Additions based on tax positions related to current year		134			60
Additions based on tax positions of prior year		—			—
Reductions for tax positions of prior years		—			—
Reductions due to expiration of statute of limitations		(80	)		(319	)

Balance at end of year	$	455		$	401