INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

The components of the provision for income taxes for the years ended December 31, 2017, 2016 and 2015 are as follows:



	December 31,
	2017		2016			2015

	(Dollars in thousands)
Current income tax provision	$	21,721	$	(8,763	)	$	13,723
Deferred income tax expense (benefit)	5,243		8,361			(3,409		)
Total income tax provision	$	26,964	$	(402	)	$	10,314

Schedule of effective income tax rate reconciliation

The provision for income taxes differs from the amount computed by applying the federal income tax statutory rate of 35% to income from continuing operations for the years ended December 31, 2017, 2016 and 2015, as follows:



	December 31,
	2017			2016			2015

	(Dollars in thousands)
Taxes calculated at statutory rate	$	21,385		$	(481	)	$	9,014
Increase (decrease) resulting from:
State tax expense, net of federal effect	195			386			196
Non-deductible expenses	51			51			45
Non-deductible dues	37			35			31
Bank-owned life insurance income	(321		)	(326		)	(141		)
Incentive stock option compensation expense	(187		)	(16		)	—
Tax exempt interest income	(34		)	(17		)	—
Non-deductible M&A and acquisition related costs	—			—			857
Other, net	—			(34		)	312
Change in applicable statutory rate	5,838			—			—
Income tax provision—as reported	$	26,964		$	(402	)	$	10,314

Schedule of significant deferred tax assets and liabilities

Significant deferred tax assets and liabilities at the dates indicated were as follows:



	December 31,
	2017		2016

	(Dollars in thousands)
Deferred tax assets:
Allowance for credit losses	$	6,556	$	9,233
Acquired loan valuation allowance	835		3,493
Net operating loss carryforward	989		1,755
Nonqualified stock options and restricted stock	1,449		1,561
Real estate acquired by foreclosure write-downs	583		1,432
Acquired deposit valuation allowance	273		804
Unrealized loss on available-for-sale securities	2,093		390
Pre-opening expenses	58		120
Non-accrual loan interest	828		809
Other	310		852
Total deferred tax assets	13,974		20,449
Deferred tax liabilities:
Goodwill and core deposit intangibles	2,436		4,337
Acquired subordinated debentures valuation allowance	1,709		2,996
Acquired investments valuation allowance	413		688
Deferred loan costs	476		674
Depreciable assets	83		392
Other	99		96
Total deferred tax liabilities	5,216		9,183
Net deferred tax asset	$	8,758	$	11,266

Summary of uncertain tax positions

The uncertain tax position as of the dates indicated were as follows:



	2017		2016		2015

	(Dollars in thousands)
Unrecognized tax benefits - January 1	$	1,625	$	1,625	$	—
Gross increases - tax positions in current period	—		—		1,625
Unrecognized tax benefits - December 31	$	1,625	$	1,625	$	1,625