Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016
	(in thousands)
Deferred tax assets:
Allowance for loan and lease losses	$	18,315		$	26,638
Deferred compensation	9,539			16,232
Stock options and restricted stock	1,438			1,922
OREO	521			111
Nonaccrual interest	163			320
Purchase accounting	—			2,613
Unrealized loss on investment securities	5,992			7,492
Net operating losses and credit carryforwards	7,259			8,597
Depreciation	—			1,059
Other	985			851
Total deferred tax assets	44,212			65,835
Deferred tax liabilities:
Asset purchase tax basis difference	(5,709		)	(9,037		)
FHLB stock dividends	(782		)	(1,232		)
Deferred loan fees	(4,505		)	(5,126		)
Purchase accounting	(9,088		)	—
Depreciation	(1,581		)	—
Other	(2,036		)	(155		)
Total deferred tax liabilities	(23,701		)	(15,550		)
Net deferred tax asset	$	20,511		$	50,285

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



	Years Ended December 31,
	2017					2016					2015
	Amount			Percent		Amount			Percent		Amount			Percent
	(dollars in thousands)
Income tax based on statutory rate	$	62,262		35	%	$	52,424		35	%	$	49,567		35	%
Reduction resulting from:
Tax exempt instruments	(8,485		)	(5	)%	(7,433		)	(5	)%	(6,761		)	(5	)%
Life insurance proceeds	(3,351		)	(2	)%	(1,680		)	(1	)%	(1,554		)	(1	)%
Acquisition costs	825			1	%	—			—	%	—			—	%
Deferred tax asset revaluation	12,210			7	%	—			—	%	—			—	%
Other, net	1,694			1	%	1,604			1	%	1,541			1	%
Income tax provision	$	65,155		37	%	$	44,915		30	%	$	42,793		30	%