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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
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    2016      2015     2014  
(in thousands)                    

Current income taxes:

       

Federal taxes

   $ 57,894      $ 69,572     $ 18,111  

State taxes

     2,329        989       396  
  

 

 

    

 

 

   

 

 

 

Total current income taxes

     60,223        70,561       18,507  

Deferred income taxes:

       

Federal taxes

     14,983        63       44,113  

State taxes

     291        (631      
  

 

 

    

 

 

   

 

 

 

Total deferred income taxes

     15,274        (568     44,113  
  

 

 

    

 

 

   

 

 

 

Total income taxes

   $ 75,497      $ 69,993     $ 62,620  
  

 

 

    

 

 

   

 

 

 
Income Tax Expense Related to Gains on Sale of Securities

Income tax expense related to gains on the sale of securities is presented in the following table:

 

Year Ended December 31    2016      2015      2014  
(in thousands)                     

Income tax expense related to gains on sale of securities

   $ 249      $ 288      $ 4,101  

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    2016     2015  
(in thousands)             

Deferred tax assets:

    

Allowance for credit losses

   $ 56,090      $ 50,414   

Discount on acquired loans

     48,978        28,503   

Net operating loss/tax credit carryforwards

     17,753        16,487   

Deferred compensation

     12,236        8,515   

Securities impairments

            252   

Pension and other defined benefit plans

     7,713        8,539   

Net unrealized securities losses

     6,972        1,301   

Other

     11,264        8,020   
  

 

 

   

 

 

 

Total

     161,006        122,031   

Valuation allowance

     (18,945     (17,179
  

 

 

   

 

 

 

Total deferred tax assets

     142,061        104,852   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Loan costs

     (2,222     (2,966

Depreciation

     (12,392     (10,836

Prepaid expenses

     (682     (628

Amortizable intangibles

     (18,506     (12,940

Lease financing

     (5,538     (6,763

Debt discharge income deferral

     (1,361     (2,042

Originated mortgage servicing rights

     (748     (1,238

Fair value adjustments on securities

     (86       

Other

     (1,253     (1,928
  

 

 

   

 

 

 

Total deferred tax liabilities

     (42,788     (39,341
  

 

 

   

 

 

 

Net deferred tax assets

   $ 99,273      $ 65,511   
  

 

 

   

 

 

 
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        2016             2015             2014      

Statutory tax rate

     35.0     35.0     35.0

State taxes, net of federal benefit

     0.7        0.8        0.1   

Valuation allowance reversal

            (0.8       

Tax-exempt interest

     (2.9     (2.2     (1.8

Cash surrender value of life insurance

     (1.5     (1.3     (1.3

Tax credits

     (0.9     (1.1     (1.4

Other items

     0.2        0.1        (0.3
  

 

 

   

 

 

   

 

 

 

Actual effective tax rate

     30.6     30.5     30.3
  

 

 

   

 

 

   

 

 

 
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        2016             2015      
(in thousands)             

Balance at beginning of year

   $ 455      $ 401   

Additions based on tax positions related to current year

     163        134   

Additions based on tax positions of prior year

              

Reductions for tax positions of prior years

              

Reductions due to expiration of statute of limitations

     (76     (80
  

 

 

   

 

 

 

Balance at end of year

   $ 542      $ 455