Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

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



	2016		2015		2014
	(in thousands)
Current tax expense:
Federal	$	33,872	$	34,455	$	32,957
State	1,698		2,042		1,126
	35,570		36,497		34,083
Deferred tax expense:
Federal	7,968		12,752		18,523
State	3,086		672		—
	11,054		13,424		18,523
Income tax expense	$	46,624	$	49,921	$	52,606

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:



	2016		2015		2014
Statutory tax rate	35.0	%	35.0	%	35.0	%
Tax credit investments	(7.0	)	(5.2	)	(4.9	)
Tax-exempt income	(6.5	)	(6.0	)	(5.4	)
State income taxes, net of federal benefit	1.2		1.9		1.2
Bank owned life insurance	(0.6	)	(0.6	)	(0.5	)
Change in valuation allowance	0.3		(0.9	)	(0.8	)
Executive compensation	0.1		0.1		0.1
Other, net	(0.1	)	0.7		(0.3	)
Effective income tax rate	22.4	%	25.0	%	24.4	%

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:



	2016			2015
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	62,726		$	62,846
Postretirement and defined benefit plans	12,659			13,070
Unrealized holding losses on securities available for sale	12,260			3,250
Deferred compensation	12,017			11,839
State loss carryforwards	9,820			11,170
Other accrued expenses	9,520			7,142
Other-than-temporary impairment of investments	5,187			5,501
Other	8,500			10,165
Total gross deferred tax assets	132,689			124,983
Deferred tax liabilities:
Direct leasing	27,663			20,309
Mortgage servicing rights	13,369			14,582
Acquisition premiums/discounts	9,167			8,897
Premises and equipment	5,625			5,955
Intangible assets	1,810			1,614
Other	12,530			9,593
Total gross deferred tax liabilities	70,164			60,950
Net deferred tax asset, before valuation allowance	62,525			64,033
Valuation allowance	(8,950		)	(8,359		)
Net deferred tax asset	$	53,575		$	55,674

Summary of Income Tax Contingencies

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



	2016			2015			2014
	(in thousands)
Balance at beginning of year	$	2,373		$	1,944		$	1,651
Prior period tax positions	—			—			188
Current period tax positions	456			492			269
Lapse of statute of limitations	(391		)	(63		)	(164		)
Balance at end of year	$	2,438		$	2,373		$	1,944