Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Components of Income Tax Expense

(Dollar amounts in thousands)

	Years Ended December 31,
	2018			2017			2016
Current income tax expense (benefit):
Federal	$	13,497		$	93,540		$	46,748
State	(619		)	104			790
Total	12,878			93,644			47,538
Deferred income tax expense (benefit):
Federal	14,489			(12,219		)	(7,786		)
State	11,820			8,142			6,419
Total	26,309			(4,077		)	(1,367		)
Total income tax expense	$	39,187		$	89,567		$	46,171

Schedule of Effective Income Tax Rate Reconciliation

Components of Effective Tax Rate

(Dollar amounts in thousands)

	Years Ended December 31,
	2018					2017					2016
	Amount			% of Pretax Income		Amount			% of Pretax Income		Amount			% of Pretax Income
Statutory federal income tax	$	41,382		21.0	%	$	65,784		35.0	%	$	48,482		35.0	%
(Decrease) increase in income taxes resulting from:
Deferred tax asset revaluation	(8,721		)	(4.4	)	23,709			12.6		—			—
Tax-exempt income, net of interest expense   disallowance	(3,104		)	(1.6	)	(5,065		)	(2.7	)	(5,439		)	(3.9	)
State income tax, net of federal income tax effect	8,846			4.5		5,069			2.7		4,323			3.1
Other	784			0.4		70			0.1		(1,195		)	(0.9	)
Total	$	39,187		19.9	%	$	89,567		47.7	%	$	46,171		33.3	%

Schedule of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities

(Dollar amounts in thousands)

	As of December 31,
	2018			2017
Deferred tax assets:
Allowance for credit losses	$	19,591		$	20,285
Deferred gain on sale-leaseback transaction	13,752			15,668
Federal net operating loss ("NOL") carryforwards	8,871			—
Equity based compensation	3,971			3,605
State NOL carryforwards	3,293			3,384
Non-equity based compensation	2,210			897
OREO	1,460			2,089
Deferred incentives	1,382			29
Property valuation adjustments	1,214			69
AMT and other credit carryforwards	244			667
Other	8,179			12,419
Total deferred tax assets	64,167			59,112
Deferred tax liabilities:
Accrued retirement benefits	(8,502		)	(3,517		)
Fixed assets	(7,322		)	(1,660		)
Deferred loan fees and costs	(4,985		)	(4,169		)
Cancellation of indebtedness income	—			(641		)
Acquisition adjustments	(686		)	2,489
Other	(2,823		)	(2,449		)
Total deferred tax liabilities	(24,318		)	(9,947		)
Deferred tax valuation allowance	—			—
Net deferred tax assets	39,849			49,165
Tax effect of adjustments related to other comprehensive (loss) income	20,280			15,571
Net deferred tax assets including adjustments	$	60,129		$	64,736
NOL carryforwards available to offset future taxable income:
Federal gross NOL carryforwards, begin to expire in 2028	$	42,242		$	—
Illinois gross NOL carryforwards, begin to expire in 2024	209,802			188,995
Indiana gross NOL carryforwards, begin to expire in 2025	14,260			16,174
Wisconsin gross NOL carryforwards, begin to expire in 2032	1,212			—
AMT credits	—			410

Summary of Income Tax Contingencies

Rollforward of Unrecognized Tax Benefits

(Dollar amounts in thousands)

	Years Ended December 31,
	2018			2017			2016
Beginning balance	$	16,248		$	2,039		$	1,408
Additions for tax positions relating to the current year	1,209			845			640
Additions for tax positions relating to prior years	582			13,389			—
Reductions for tax positions relating to prior years	(60		)	(25		)	(9		)
Reductions for settlements with taxing authorities	(1,629		)	—			—
Ending balance	$	16,350		$	16,248		$	2,039
Interest and penalties not included above(1):
Interest (income) expense, net of tax effect, and penalties	$	(21	)	$	118		$	49
Accrued interest and penalties, net of tax effect, at end of year	170			191			73

⁽¹⁾  Included in income tax expense in the Consolidated Statements of Income.