Income Taxes (Tables)

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate

Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
(dollars in thousands)		2019				2018				2019				2018
Provision at statutory rate of 21%	$	16,238			$	10,153			$	30,808			$	21,270
Tax-exempt income:
Tax-exempt interest		(2,604	)			(2,237	)			(5,135	)			(4,428	)
Section 291/265 interest disallowance		123				73				234				135
Company-owned life insurance income		(569	)			(510	)			(1,239	)			(1,057	)
Tax-exempt income		(3,050	)			(2,674	)			(6,140	)			(5,350	)
State income taxes		1,558				1,028				3,558				2,216
Interim period effective rate adjustment		353				933				1,041				1,025
Tax credit investments - federal		(715	)			(4,973	)			(1,134	)			(10,741	)
Other, net		(25	)			(122	)			(670	)			882
Income tax expense	$	14,359			$	4,345			$	27,463			$	9,302
Effective tax rate		18.6		%		9.0		%		18.7		%		9.2		%

Schedule of Significant Components of Net Deferred Tax Assets (Liabilities)

Significant components of net deferred tax assets (liabilities) were as follows at June 30, 2019 and December 31, 2018:

	June 30,			December 31,
(dollars in thousands)	2019			2018
Deferred Tax Assets
Allowance for loan losses, net of recapture	$	14,605		$	14,514
Benefit plan accruals		15,481			21,754
Alternative minimum tax credit		2,545			2,545
Net operating loss carryforwards		25,653			31,765
Federal tax credits		696			1,779
Deferred gain on securities		1,773			1,976
Acquired loans		22,470			26,956
Operating lease liabilities		29,642			—
Lease exit obligation		—			1,025
Unrealized losses on available-for-sale investment securities		—			11,853
Unrealized losses on held-to-maturity investment securities		2,262			2,497
Tax credit investments and other partnerships		3,428			3,004
Other real estate owned		158			144
Other, net		713			3,167
Total deferred tax assets		119,426			122,979
Deferred Tax Liabilities
Accretion on investment securities		(978	)		(595	)
Purchase accounting		(17,828	)		(18,100	)
Loan servicing rights		(6,100	)		(6,141	)
Premises and equipment		(12,134	)		(8,507	)
Prepaid expenses		(716	)		(681	)
Operating lease right-of-use assets		(28,510	)		—
Unrealized gains on available-for-sale investment securities		(14,550	)		—
Unrealized gains on hedges		(398	)		(358	)
Other, net		(2,210	)		(1,549	)
Total deferred tax liabilities		(83,424	)		(35,931	)
Net deferred tax assets	$	36,002		$	87,048