Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Provisions Included in the Consolidated Statements of Income

The income tax provisions included in the consolidated statements of income are summarized as follows:


(In thousands)	Year Ended December 31
	2017		2016			2015
Current (benefit) expense:
Federal	$	65,459	$	63,169		$	58,373
State		7,960		5,154			5,428
Deferred expense:
Federal		20,920		8,844			1,657
Tax Act remeasurement		37,732		0			0
State		2,175		(1,592	)		72

Total income taxes	$	134,246	$	75,575		$	65,530

Reconciliation of Income Tax Expense to the Amount Computed by Applying the Statutory Federal Income Tax Rate

The following is a reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate to income before income taxes.


	Year Ended December 31
(Dollars in thousands)	2017						2016						2015
	Amount			%			Amount			%			Amount			%
Tax on income before taxes at statutory federal rate	$	99,689			35.0%		$	77,930			35.0%		$	71,222			35.0%
Plus: State income taxes net of federal tax benefits		6,207			2.2			4,084			1.8			3,516			1.7

		105,896			37.2			82,014			36.8			74,738			36.7
Increase (decrease) resulting from:
Tax-exempt interest income		(5,362	)		(1.9	)		(3,919	)		(1.8	)		(4,158	)		(2.0	)
Deferred taxes due to the Tax Act		37,732			13.2			0			0.0			0			0.0
Historic tax credit		0			0.0			0			0.0			(1,262	)		(0.6	)
Other items-net		(4,020	)		(1.4	)		(2,520	)		(1.1	)		(3,788	)		(1.9	)

Income taxes	$	134,246			47.1%		$	75,575			33.9%		$	65,530			32.2%

Components of United's Deferred Tax Assets and Liabilities

Significant components of United’s deferred tax assets and liabilities (included in other assets in the Consolidated Balance Sheets) at December 31, 2017 and 2016 are as follows:


(In thousands)	2017		2016
Deferred tax assets:
Allowance for credit losses	$	18,012	$	26,941
Accrued benefits payable		12,175		0
Other accrued liabilities		779		3,478
Unrecognized components of net periodic pension costs		13,443		20,166
Unrealized loss on securities available for sale		2,797		1,436
Premises and equipment		0		93
Other real estate owned		3,169		6,724
Deferred mortgage points		3,028		0
Purchase accounting intangibles		14,855		41,392

Total deferred tax assets		68,258		100,230


Deferred tax liabilities:
Deferred mortgage points		2,994		3,608
Accrued benefits payable		0		4,061
Premises and equipment		0		0
Other		1,627		13,687

Total deferred tax liabilities		4,621		21,356

Net deferred tax assets	$	63,637	$	78,874

Reconciliation of the Total Amounts of Unrecognized Tax Benefits

Below is a reconciliation of the total amounts of unrecognized tax benefits:


	December 31
(In thousands)	2017		2016
Unrecognized tax benefits at beginning of year	$	2,442	$	2,102
Increase in unrecognized tax benefits as a result of tax positions taken during the current period		972		673
Decreases in the unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		(520)		(333)

Unrecognized tax benefits at end of year	$	2,894	$	2,442