Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The provision for income tax expense consists of the following for the years ended December 31:



(Dollars in thousands)	2018			2017			2016
Current expense (benefit)	$	(115,195	)	$	84,827		$	103,335
Deferred expense (benefit)	153,518			71,257			(16,654		)
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Tax benefits attributable to items charged to equity and goodwill	(866		)	—			1,439
	$	32,278		$	150,466		$	85,193



(Dollars in thousands)	2018			2017			2016
Federal tax based on statutory rate	$	84,531		$	102,508		$	95,189
Increase (decrease) resulting from:
Effect of tax-exempt income	(5,801		)	(9,435		)	(8,203		)
Interest and other nondeductible expenses	6,464			9,605			3,250
State taxes, net of federal benefit	12,459			6,970			4,770
Tax credits	(5,179		)	(10,845		)	(7,112		)
Amortization on qualified affordable housing tax credits	—			5,227			4,185
Other ⁽¹⁾	(60,196		)	46,436			(6,886		)
	$	32,278		$	150,466		$	85,193
Effective tax rate	8.0		%	51.4		%	31.3		%

The net deferred tax asset (liability) at December 31 is as follows:



(Dollars in thousands)	2018			2017
Deferred tax asset:
NOL and credit carryforward	$	42,837		$	8,364
Allowance for credit losses	38,571			38,402
Deferred compensation	5,482			5,876
Basis difference in acquired assets and liabilities	9,228			43,391
Unrealized losses on loans and securities	—			12,198
OREO	32			2,639
Other	19,395			22,719
	115,545			133,589
Deferred tax liability:
Unrealized gains on loans and securities	(98,807		)	—
FHLB stock	—			(300		)
Premises and equipment	(10,626		)	(3,723		)
Acquisition intangibles	(9,757		)	(8,151		)
Deferred loan costs	(5,814		)	(3,114		)
Basis difference in acquired assets and liabilities	(17,628		)	(31,309		)
Lease receivable	(37,844		)	—
Other	(6,485		)	(4,885		)
	(186,961		)	(51,482		)
Net deferred tax (liability) asset	$	(71,416	)	$	82,107