INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense in Consolidated Statements of Income

The income tax expense in the consolidated statements of income consists of the following:

	For the Years Ended December 31,
(dollars in thousands)	2019		2018		2017
Current – federal	$	21,994	$	27,714	$	33,074
Current - state	5,328		1,375		5,230
Deferred - federal	19,639		496		3,874
Deferred - state	3,182		878		(5,069)
Remeasurement of deferred tax assets and deferred tax liabilities at reduced federal corporate tax rate	—		—		13,625
	$	50,143	$	30,463	$	50,734

Schedule of Reconciliation of Differences in Company's Income Tax Expense

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:

	For the Years Ended December 31,
(dollars in thousands)	2019			2018			2017
Federal income statutory rate	21		%	21		%	35		%
Tax at federal income tax rate	$	44,433		$	31,813		$	43,499
Change resulting from:
State income tax, net of federal benefit	7,389			1,965			(680)
Tax-exempt interest	(2,911)			(3,095)			(4,390)
Increase in cash value of bank owned life insurance	(581)			(382)			(556)
Excess tax benefit from stock compensation	(108)			(602)			(939)
Nondeductible merger expenses	799			1,002			—
Other	1,122			(238)			175
Remeasurement of deferred tax assets and deferred tax liabilities at reduced federal corporate tax rate	—			—			13,625
Provision for income taxes	$	50,143		$	30,463		$	50,734

Components of Deferred Income Taxes

The components of deferred income taxes are as follows:

	December 31,
(dollars in thousands)	2019		2018
Deferred tax assets
Allowance for loan losses	$	9,596	$	7,222
Deferred compensation	3,459		3,467
Deferred gain on interest rate swap	39		56
Nonaccrual interest	107		107
Purchase accounting adjustments	21,104		13,144
Other real estate owned	4,556		2,980
Net operating loss tax carryforward	18,775		19,277
Tax credit carryforwards	3,701		1,655
Unrealized loss on securities available for sale	—		2,792
FDIC-assisted transaction adjustments	2,060		2,501
Capitalized costs, accrued expenses and other	4,840		2,535
Lease liability	10,619		—
	78,856		55,736
Deferred tax liabilities
Premises and equipment	12,211		4,597
Mortgage servicing rights	25,990		3,716
Subordinated debentures	7,226		5,259
Goodwill and intangible assets	15,756		7,017
Unrealized gain on securities available for sale	5,430		—
Unrealized gain on interest rate swap	—		21
Right of use lease asset	10,063		—
	76,676		20,610
Net deferred tax asset	$	2,180	$	35,126