Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense

The following table presents the components of income tax expense:



(Dollars in thousands)
Years ended December 31,	2017			2016		2015
Current tax expense:
Federal		$23,827			$19,444		$17,864
State	2,201			2,061		1,194
Total current tax expense	26,028			21,505		19,058
Deferred tax expense (benefit):
Federal	5,717			796		2,003
State	(30		)	72		(183		)
Total deferred tax expense	5,687			868		1,820
Total income tax expense		$31,715			$22,373		$20,878

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes. The following table presents the reasons for the differences:



(Dollars in thousands)
Years ended December 31,	2017			2016			2015
Tax expense at Federal statutory rate		$27,174			$24,099			$22,520
(Decrease) increase in taxes resulting from:
Tax-exempt income	(1,313		)	(1,599		)	(1,604		)
Dividends received deduction	(55		)	(58		)	(57		)
BOLI	(757		)	(930		)	(694		)
Stock based compensation	(481		)	—			—
Federal tax credits	(364		)	(364		)	(364		)
Change in fair value of contingent consideration	(225		)	(314		)	—
Acquisition related expenses	—			—			318
State income tax expense, net of federal income tax benefit	1,411			1,387			658
Adjustment to net deferred tax assets for enacted changes in federal tax law	6,170			—			—
Other	155			152			101
Total income tax expense		$31,715			$22,373			$20,878

Schedule of Deferred Tax Assets and Liabilities

The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities:



(Dollars in thousands)
December 31,	2017			2016
Deferred tax assets:
Allowance for loan losses		$6,225			$9,621
Defined benefit pension obligations	1,767			3,804
Deferred compensation	3,334			3,991
Deferred loan origination fees	1,325			1,999
Stock based compensation	1,240			1,519
Net unrealized losses on securities available for sale	2,314			4,008
Other	2,281			3,495
Deferred tax assets	18,486			28,437
Deferred tax liabilities:
Amortization of intangibles	(2,148		)	(3,765		)
Deferred loan origination costs	(3,550		)	(5,156		)
Loan servicing rights	(849		)	(1,293		)
Other	(1,200		)	(1,419		)
Deferred tax liabilities	(7,747		)	(11,633		)
Net deferred tax asset		$10,739			$16,804