INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of components of income tax expenses

The following table presents the components of income tax expense for the years indicated:




($ in thousands)	Year Ended December 31,
($ in thousands)	2016			2015			2014
Current income tax expense (benefit):
Federal	$	63,642		$	(62,829	)	$	174,640
State	48,558			(4,750		)	70,527
Foreign	1,345			409			3,846
Total current income tax expense (benefit)	113,545			(67,170		)	249,013
Deferred income tax expense (benefit):
Federal	25,296			199,858			(111,122		)
State	1,883			60,437			(36,040		)
Foreign	(213		)	919			(706		)
Total deferred income tax expense (benefit)	26,966			261,214			(147,868		)
Income tax expense	$	140,511		$	194,044		$	101,145

Schedule of reconciliation of the federal statutory rate to the effective income tax rate

The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2016, 2015 and 2014:




	Year Ended December 31,
	2016		2015		2014
Federal income tax provision at statutory rate	35.0	%	35.0	%	35.0	%
State franchise taxes, net of federal tax effect	6.1		6.3		5.0
Tax credits, net of amortization	(18.3	)	(8.7	)	(16.7	)
Other, net	1.8		0.9		(0.7	)
Effective income tax rate	24.6	%	33.5	%	22.6	%

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities)

The tax effects of temporary differences that give rise to significant portion of deferred tax assets and deferred tax liabilities as of December 31, 2016 and 2015 are presented below:




($ in thousands)	December 31,
	2016												2015
	Federal			State			Foreign			Total			Federal			State			Foreign			Total
Deferred tax assets:
Allowance for loan losses and OREO reserves	$	97,921		$	27,792		$	1,365		$	127,078		$	102,382		$	28,686		$	1,153		$	132,221
Investments in partnerships, tax credit and other investments, net	—			—			—			—			(1,250		)	3,894			—			2,644
Net operating loss (“NOL”) carryforwards	—			283			—			283			—			282			—			282
Deferred compensation	20,093			5,731			—			25,824			21,484			6,028			—			27,512
Mortgage servicing assets	—			—			—			—			875			243			—			1,118
Purchased loan premiums	170			48			—			218			172			48			—			220
Unrealized losses on securities	16,253			5,315			—			21,568			4,070			1,083			—			5,153
State taxes	1,333			—			—			1,333			—			—			—			—
Interest income on nonaccrual loans	4,461			1,258			—			5,719			4,124			1,144			—			5,268
Other, net	1,883			4,938			97			6,918			13,520			3,769			96			17,385
Total gross deferred tax assets	142,114			45,365			1,462			188,941			145,377			45,177			1,249			191,803
Valuation allowance	—			(283		)	—			(283		)	—			(282		)	—			(282		)
Total deferred tax assets, net of valuation allowance	$	142,114		$	45,082		$	1,462		$	188,658		$	145,377		$	44,895		$	1,249		$	191,521
Deferred tax liabilities:
Core deposit intangibles	$	(9,768	)	$	(2,874	)	$	—		$	(12,642	)	$	(12,588	)	$	(3,616	)	$	—		$	(16,204	)
Investments in partnerships, tax credit and other investments, net	(7,012		)	5,318			—			(1,694		)	—			—			—			—
Property, plant and equipment	(26,406		)	(5,226		)	—			(31,632		)	(15,167		)	(4,093		)	—			(19,260		)
FHLB stock dividends	(1,189		)	(335		)	—			(1,524		)	(2,229		)	(618		)	—			(2,847		)
Deferred loan fees	—			—			—			—			(1,198		)	(332		)	—			(1,530		)
State taxes	—			—			—			—			(912		)	—			—			(912		)
Mortgage servicing assets	(184		)	(52		)	—			(236		)	—			—			—			—
Acquired debt	(2,210		)	(623		)	—			(2,833		)	(2,295		)	(637		)	—			(2,932		)
Acquired loans and OREO	(5,407		)	(1,242		)	(406		)	(7,055		)	(7,222		)	(1,714		)	(406		)	(9,342		)
Other, net	(1,025		)	(319		)	—			(1,344		)	(1,740		)	(883		)	—			(2,623		)
Total gross deferred tax liabilities	(53,201		)	(5,353		)	(406		)	(58,960		)	(43,351		)	(11,893		)	(406		)	(55,650		)
Net deferred tax assets	$	88,913		$	39,729		$	1,056		$	129,698		$	102,026		$	33,002		$	843		$	135,871

Summary of the activity related to unrecognized tax benefits

The following table summarizes the activities related to the Company’s unrecognized tax benefits:




($ in thousands)	Year Ended December 31,
($ in thousands)	2016			2015
Beginning Balance	$	7,125		$	5,020
Additions for tax positions of prior years	5,819			2,105
Settlements	(2,525		)	—
Ending Balance	$	10,419		$	7,125