Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are as follows:



	2015		2014		2013
	(in thousands)
Current tax expense:
Federal	$	34,455	$	32,957	$	38,573
State	2,042		1,126		687
	36,497		34,083		39,260
Deferred tax expense (benefit):
Federal	12,752		18,523		15,357
State	672		—		(3,532		)
	13,424		18,523		11,825
Income tax expense	$	49,921	$	52,606	$	51,085

Schedule of Effective Income Tax Rate Reconciliation

The differences between the effective income tax rate and the federal statutory income tax rate are as follows:



	2015		2014		2013
Statutory tax rate	35.0	%	35.0	%	35.0	%
Tax-exempt income	(6.0	)	(5.4	)	(5.2	)
Tax Credit Investments	(5.2	)	(4.9	)	(4.9	)
Change in valuation allowance	(0.9	)	(0.8	)	(2.0	)
Bank owned life insurance	(0.6	)	(0.5	)	(0.5	)
State income taxes, net of federal benefit	1.9		1.2		1.1
Executive compensation	0.1		0.1		0.1
Other, net	0.7		(0.3	)	0.4
Effective income tax rate	25.0	%	24.4	%	24.0	%

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded by the Corporation is included in other assets and consists of the following tax effects of temporary differences as of December 31:



	2015			2014
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	62,846		$	68,407
Postretirement and defined benefit plans	13,070			16,017
Deferred compensation	11,839			12,486
State loss carryforwards	11,170			12,960
Other accrued expenses	7,142			7,335
Other-than-temporary impairment of investments	5,501			8,126
Unrealized holding losses on securities available for sale	3,250			—
Other	10,165			8,433
Total gross deferred tax assets	124,983			133,764
Deferred tax liabilities:
Direct leasing	20,309			12,399
Mortgage servicing rights	14,582			15,004
Acquisition premiums/discounts	8,897			8,200
Premises and equipment	5,955			7,897
Intangible assets	1,614			1,382
Unrealized holding gains on securities available for sale	—			3,949
Other	9,593			7,960
Total gross deferred tax liabilities	60,950			56,791
Net deferred tax asset, before valuation allowance	64,033			76,973
Valuation allowance	(8,359		)	(10,187		)
Net deferred tax asset	$	55,674		$	66,786

Summary of Income Tax Contingencies

The following summarizes the changes in unrecognized tax benefits for the years ended December 31:



	2015			2014			2013
	(in thousands)
Balance at beginning of year	$	1,944		$	1,651		$	1,453
Prior period tax positions	—			188			—
Current period tax positions	492			269			318
Lapse of statute of limitations	(63		)	(164		)	(120		)
Balance at end of year	$	2,373		$	1,944		$	1,651