Income Tax (Tables)

12 Months Ended

Dec. 31, 2016

The components of income tax expense are as follows:

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2016			2015 (1)
	(in thousands)
Deferred tax assets:
Allowance for loan and lease losses	$	26,638		$	26,024
Deferred compensation (1)	16,232			14,716
Stock options and restricted stock	1,922			1,423
OREO	111			813
Nonaccrual interest	320			69
Purchase accounting	2,613			9,457
Unrealized loss on investment securities (1)	7,492			—
Net operating losses and credit carryforwards	8,597			11,467
Depreciation	1,059			—
Other	851			180
Total deferred tax assets	65,835			64,149
Deferred tax liabilities:
Asset purchase tax basis difference	(9,037		)	(9,058		)
FHLB stock dividends	(1,232		)	(1,232		)
Deferred loan fees	(5,126		)	(5,202		)
Unrealized gain on investment securities (1)	—			(30		)
Depreciation	—			(3,730		)
Other	(155		)	—
Total deferred tax liabilities	(15,550		)	(19,252		)
Net deferred tax asset	$	50,285		$	44,897

A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows:



	Years Ended December 31,
	2016					2015					2014
	Amount			Percent		Amount			Percent		Amount			Percent
	(dollars in thousands)
Income tax based on statutory rate	$	52,424		35	%	$	49,567		35	%	$	41,225		35	%
Reduction resulting from:
Tax exempt instruments	(7,433		)	(5	)%	(6,761		)	(5	)%	(5,328		)	(5	)%
Life insurance proceeds	(1,680		)	(1	)%	(1,554		)	(1	)%	(1,352		)	(1	)%
Acquisition costs	—			—	%	—			—	%	448			—	%
Other, net	1,604			1	%	1,541			1	%	1,218			2	%
Income tax provision	$	44,915		30	%	$	42,793		30	%	$	36,211		31	%