Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31 are as follows:



	Years ended December 31,
(in thousands)	2015			2014		2013
Current:
Federal	$	22,916		$	9,399	$	24,029
State and local	2,798			195		2,890
Total current	25,714			9,594		26,919
Deferred:
Federal	(5,266		)	3,908		(9,393		)
State and local	(497		)	369		(550		)
Total deferred	(5,763		)	4,277		(9,943		)
Total income tax expense	$	19,951		$	13,871	$	16,976

Schedule of Income Tax Rate Reconciliation

A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate of 35% in 2015, 2014, and 2013 to income before income taxes and the amounts reflected in the consolidated statements of operations is as follows:



	Years ended December 31,
(in thousands)	2015			2014			2013
Income tax expense at statutory rate	$	20,440		$	14,365		$	17,528
Increase (reduction) in income tax resulting from:
Tax-exempt income, net	(931		)	(857		)	(1,128		)
State and local income taxes, net	1,414			741			1,314
Bank-owned life insurance, net	(462		)	(535		)	(484		)
Non-deductible expenses	259			290			222
Change in estimated rate for deferred taxes	—			—			336
Tax benefits of LIHTC investments, net	(179		)	(158		)	(204		)
Other, net	(590		)	25			(608		)
Total income tax expense	$	19,951		$	13,871		$	16,976

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows:



	Years ended December 31,
(in thousands)	2015		2014
Deferred tax assets:
Allowance for loan losses	$	16,705	$	17,463
Basis difference on PCI assets, net	8,806		5,477
Basis difference on Other real estate	328		516
Deferred compensation	4,509		4,854
Goodwill and other intangible assets	6,973		9,001
Accrued compensation	2,222		2,364
Other, net	907		979
Total deferred tax assets	$	40,450	$	40,654

Deferred tax liabilities:
FDIC loss share receivable, net	$	—	$	5,542
Unrealized gains on securities available for sale	183		1,091
State tax credits held for sale, net of economic hedge	594		1,051
Core deposit intangibles	1,178		1,595
Total deferred tax liabilities	1,955		9,279
Net deferred tax asset	$	38,495	$	31,375

Schedule of Unrecognized Tax Benefits

The activity in the gross liability for unrecognized tax benefits was as follows:



(in thousands)	2015			2014			2013
Balance at beginning of year	$	1,884		$	1,257		$	1,148
Additions based on tax positions related to the current year	230			401			233
Additions for tax positions of prior years	46			523			53
Reductions for tax positions of prior years	(437		)	—			—
Settlements or lapse of statute of limitations	(364		)	(297		)	(177		)
Balance at end of year	$	1,359		$	1,884		$	1,257