INCOME AND FRANCHISE TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of components of income tax expense (benefit)



	Current			Deferred		Total
	(Dollars in thousands)
Year ended December 31, 2015
Federal	$	1,128		$	20,061	$	21,189
State	(119		)	6,018		5,899
Total	$	1,009		$	26,079	$	27,088

Components of income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 were as follows:



	Current			Deferred		Total
	(Dollars in thousands)
Year ended December 31, 2016
Federal	$	805		$	19,842	$	20,647
State	(4		)	4,585		4,581
Total	$	801		$	24,427	$	25,228



	Current			Deferred		Total
	(Dollars in thousands)
Year ended December 31, 2014
Federal	$	—		$	18,710	$	18,710
State	(93		)	1,772		1,679
Total	$	(93	)	$	20,482	$	20,389

Schedule of the reasons of difference between the income tax expense (benefit) and the expected tax expense

Income tax expense (benefit) for the periods presented differed from the "expected" tax expense (computed by applying the U.S. federal corporate tax rate of 35% to income (loss) before income taxes) for the following reasons:



	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands)
Computed "expected" tax expense (benefit)	$	25,260		$	25,535		$	21,295
Increase (decrease) in taxes resulting from:
Tax-exempt interest	(1,410		)	(1,420		)	(1,412		)
Other tax-exempt income	(940		)	(712		)	(1,023		)
Low-income housing and energy tax credits	(899		)	(946		)	(1,540		)
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance	2,981			3,834			2,569
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense	(52		)	(44		)	(158		)
Other	288			841			658
Total	$	25,228		$	27,088		$	20,389

Schedule of the tax effects of temporary differences giving rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:



	December 31,
	2016		2015
	(Dollars in thousands)
Deferred tax assets
Allowance for loan and lease losses	$	19,926	$	22,275
Accrued expenses	644		2,555
Employee retirement benefits	6,138		6,921
Federal and state tax credit carryforwards	33,803		34,821
Interest on nonaccrual loans	493		606
Federal and state net operating loss carryforwards	2,732		19,850
Restricted stock and nonqualified stock options	412		1,049
Premises and equipment	4,106		4,269
Other	4,567		4,958
Total deferred tax assets	72,821		97,304

Deferred tax liabilities
Intangible assets	8,138		10,006
Leases	284		423
Other	2,722		2,093
Total deferred tax liabilities	11,144		12,522

Deferred tax valuation allowance	2,751		2,803

Net deferred tax assets	$	58,926	$	81,979