Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The following presents the components of income tax expense for the years ended December 31:



	2019		2018			2017
	(dollars in thousands)
Current income tax provision:
Federal	$	34,124	$	19,787		$	18,644
State	16,415		13,178			7,062
Total current income tax provision	50,539		32,965			25,706
Deferred income tax provision (benefit):
Federal	4,645		8,142			8,294
Effect of the Tax Act	—		(1,441		)	5,633
State	2,851		2,574			2,493
Total deferred income tax provision (benefit)	7,496		9,275			16,420
Total income tax provision	$	58,035	$	42,240		$	42,126

Schedule of reconciliation from statutory federal income taxes to the Company's effective income taxes

A reconciliation from statutory federal income taxes, which are based on a statutory rate of 21% for 2019 and 2018 and 35% for 2017, to the Company’s total effective income tax provisions for the years ended December 31 is as follows:



	2019			2018			2017
	(dollars in thousands)
Statutory federal income tax provision	$	45,729		$	34,803		$	35,778
State taxes, net of federal income tax effect	15,764			12,724			6,720
Cash surrender life insurance	(565		)	(582		)	(645		)
Tax exempt interest	(1,503		)	(1,135		)	(1,660		)
Non-deductible merger costs	—			375			824
LIHTC investments	(1,570		)	(761		)	(1,031		)
Effect of the Tax Act	—			(1,441		)	5,633
Excess tax benefit of stock-based compensation	(728		)	(1,811		)	(1,995		)
Prior year true-up	—			—			(1,108		)
Other	908			68			(390		)
Total income tax provision	$	58,035		$	42,240		$	42,126

Schedule of deferred tax assets (liabilities) comprised of the temporary differences between the financial statement carrying amounts and the tax basis of assets

Deferred tax assets (liabilities) were comprised of the following temporary differences between the financial statement carrying amounts and the tax basis of assets at December 31:



	2019			2018
	(dollars in thousands)
Deferred tax assets:
Accrued expenses	$	2,126		$	3,239
Net operating loss	4,765			6,115
Allowance for loan losses, net of bad debt charge-offs	10,415			10,709
Deferred compensation	3,616			3,649
State taxes	3,746			2,707
Loan discount	11,634			17,677
Stock-based compensation	3,535			3,234
Unrealized loss on available for sale securities	—			2,308
Operating lease liabilities	13,334			—
AMT credit and other state tax credit carryovers	416			96
Total deferred tax assets	53,587			49,734
Deferred tax liabilities:
Operating lease right-of-use assets	$	(12,382	)	$	—
Deferred FDIC gain	(228		)	(364		)
Core deposit intangibles	(22,415		)	(27,388		)
Loan origination costs	(4,828		)	(4,760		)
Depreciation	(1,814		)	(1,192		)
Unrealized gain on available for sale securities	(8,639		)	—
Other	(4,652		)	(403		)
Total deferred tax liabilities	(54,958		)	(34,107		)
Valuation allowance	—			—
Net deferred tax (liabilities) asset	$	(1,371	)	$	15,627

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 and 2018 is as follows:



	2019		2018
	(dollars in thousands)
Balance at January 1,	$	2,906	$	2,906
Additions based on tax positions related to prior years	—		—
Balance at December 31,	$	2,906	$	2,906