INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The provision for income taxes is comprised of the following components:

	Years Ended December 31
	2016			2015		2014
	(Dollars in thousands)
Current expense
Federal	$	26,549		$	11,946	$	14,709
State	8,883			5,052		6,350
Total current expense	35,432			16,998		21,059
Deferred expense (benefit)
Federal	153			8,466		2,877
State	(158		)	1,754		(37		)
Total deferred expense (benefit)	(5		)	10,220		2,840
Total expense	$	35,427		$	27,218	$	23,899

Schedule of Income Tax Rate Reconciliation

The difference between the statutory federal income tax rate of 35% and the effective income tax rate reported for the last three years is detailed below:

	Years Ended December 31
	2016					2015					2014
	(Dollars in thousands)
Computed statutory federal income tax provision	$	39,226		35.00	%	$	32,262		35.00	%	$	29,310		35.00	%
State taxes, net of federal tax benefit	5,643			5.03	%	4,500			4.88	%	4,104			4.90	%
Nontaxable interest, net	(996		)	(0.89	)%	(973		)	(1.06	)%	(795		)	(0.95	)%
New Markets Tax Credits	(6,360		)	(5.67	)%	(6,514		)	(7.07	)%	(6,708		)	(8.01	)%
Low Income Housing Project Investments	(1,641		)	(1.46	)%	(1,182		)	(1.28	)%	(594		)	(0.71	)%
Increase in cash surrender value of life insurance and gain on life insurance benefits	(1,431		)	(1.28	)%	(1,292		)	(1.40	)%	(1,782		)	(2.13	)%
Merger and other related costs (non-deductible)	210			0.19	%	185			0.20	%	274			0.33	%
Change in valuation allowance	28			0.02	%	41			0.04	%	—			—	%
Other, net	748			0.67	%	191			0.22	%	90			0.11	%
Total expense	$	35,427		31.61	%	$	27,218		29.53	%	$	23,899		28.54	%

Schedule of Net Deferred Tax Asset

The tax-effected components of the net deferred tax asset at December 31 were as follows:

	2016			2015
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	15,401		$	14,621
Allowance for loan losses	24,681			22,744
Deferred gain on sale leaseback transaction	1,744			2,158
Derivatives fair value adjustment	—			1,033
Employee and director equity compensation	2,095			2,466
Federal Home Loan Bank borrowings fair value adjustment	82			108
Loan basis difference fair value adjustment	4,336			3,789
Net operating loss carry-forward	69			41
New Markets Tax Credit carry-forward	—			459
Other	1,015			451
Gross deferred tax assets	49,423			47,870
Valuation allowance	(69		)	(41		)
Total deferred tax assets net of valuation allowance	$	49,354		$	47,829
Deferred tax liabilities
Core deposit and other intangibles	$	3,040		$	3,785
Deferred loan fees, net	5,407			4,872
Fixed assets	6,168			7,269
Goodwill	14,737			14,576
Net unrealized gain on securities available for sale	105			805
Derivatives fair value adjustment	454			—
Other	3,909			2,468
Gross deferred tax liabilities	$	33,820		$	33,775
Total net deferred tax asset	$	15,534		$	14,054

Reconciliation of Unrecognized Tax Benefits

The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	(Dollars in thousands)
Balance at December 31, 2014	$	—
Reduction of tax positions for prior years	—
Increase for prior year tax position	—
Increase for current year tax positions	81
Balance at December 31, 2015	$	81
Reduction of tax positions for prior years	—
Increase for prior year tax positions	—
Increase for current year tax positions	30
Balance at December 31, 2016	$	111