Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense (benefit) for the years ended December 31 are as follows:

(dollars in thousands)	2015			2014			2013
Current:
Federal	$	—		$	—		$	—
State	—			—			—
Total current taxes	—			—			—
Deferred
Federal	3,967			3,714			21,276
State	4,457			537			14,628
Total deferred taxes	8,424			4,251			35,904
Decrease in valuation allowance	(1,300		)	(146,743		)	(34,578		)
Total income tax (benefit) expense	$	7,124		$	(142,492	)	$	1,326

Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense computed at the statutory federal income tax rate to actual income tax expense (benefit) is presented in the following table as of December 31:

(dollars in thousands)
	2015			2014			2013
Amount of tax computed using federal statutory tax rate of 35% in all years	$	4,913		$	2,788		$	(55	)
Increases (decreases) resulting from effects of:
Non-taxable income	(39		)	(54		)	(88		)
State income taxes, net of federal benefit	2,897			349			9,508
Valuation allowance on deferred tax assets	(1,300		)	(146,743		)	(34,578		)
Bank-owned life insurance	(408		)	(403		)	(375		)
Reduction of deferred tax assets at Granite	—			—			28,293
Nondeductible merger costs	351			—			—
Other	710			1,571			(1,379		)
Total income tax (benefit) expense	$	7,124		$	(142,492	)	$	1,326

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities and the tax effect of each are as follows:

(dollars in thousands)	December 31, 2015		December 31, 2014
Deferred tax assets:
Allowance for loan losses	$	5,957	$	8,037
Net operating loss	133,524		137,412
Compensation and benefit plans	544		1,277
Fair value basis on securities	363		656
Pension and other post-retirement benefits	1,857		1,470
Other real estate owned	2,176		2,256
Gross unrealized securities losses	3,787		2,560
Other	474		851
Subtotal deferred tax assets	148,682		154,519
Less: Valuation allowance	—		(1,300		)
Total deferred tax assets	148,682		153,219
Deferred tax liabilities:
Core deposit intangible	953		1,513
Depreciable basis of premises and equipment	301		563
Net deferred loan fees and costs	1,726		1,306
Gross unrealized securities gains	352		490
Fair value basis of loans	3,186		2,473
Other	448		441
Total deferred tax liabilities	6,966		6,786
Net deferred tax assets	$	141,716	$	146,433