Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of income tax (benefit) expense attributable to income from operations

The income tax expense (benefit) attributable to income from operations is summarized as follows:



(in thousands)	Current		Deferred			Total
2017
Federal	$	26,860	$	14,749		$	41,609
State	1,162		(151		)	1,011
Total	$	28,022	$	14,598		$	42,620
2016
Federal	$	22,943	$	1,551		$	24,494
State	2,243		308			2,551
Total	$	25,186	$	1,859		$	27,045
2015
Federal	$	22,955	$	2,841		$	25,796
State	3,103		63			3,166
Total	$	26,058	$	2,904		$	28,962

Schedule of effective income tax rate reconciliation

The primary reasons for the differences between income tax expense and the amount computed by applying the statutory federal income tax rate to earnings are as follows:



	2017		2016		2015
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	0.7		1.9		2.4
Tax exempt income	(2.6	)	(2.7	)	(2.5	)
Excess benefits from equity-based compensation	(1.6	)	(1.4	)	0.0
Bank-owned life insurance income	(0.8	)	(0.8	)	(0.8	)
Federal tax credit	(2.0	)	(0.4	)	(0.8	)
Enactment of Federal tax reform	15.7		0.0		0.0
All other	0.4		(0.3	)	(0.2	)
Total	44.8	%	31.3	%	33.1	%

Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows:



(in thousands)	2017			2016			2015
Deferred tax assets:
Allowance for loan and lease losses	$	9,577		$	13,737		$	12,411
Interest income on nonperforming loans	417			214			1,207
Compensation and benefits	10,406			14,504			14,032
Purchase accounting adjustments	0			527			1,920
Liabilities held at fair value	3			1			218
Tax credit carryforward	0			0			831
Other	2,515			3,088			2,546
Total	$	22,918		$	32,071		$	33,165
Deferred tax liabilities:
Prepaid pension	$	8,140		$	11,439		$	10,992
Depreciation	2,686			3,006			3,277
Intangibles	776			882			567
Purchase accounting adjustments	194			0			0
Other	1,919			2,901			2,144
Total deferred tax liabilities	$	13,715		$	18,228		$	16,980
Net deferred tax asset at year-end	$	9,203		$	13,843		$	16,185
Net deferred tax asset at beginning of year	$	13,843		$	16,185		$	19,089
Decrease in net deferred tax asset	(4,640		)	(2,342		)	(2,904		)
Purchase accounting adjustments, net	0			(483		)	0
Federal tax reform remeasurement of AOCI deferred tax asset	$	9,958		$	0		$	0
Deferred tax expense	$	14,598		$	1,859		$	2,904