INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016		2015		2014
	(dollars in thousands)

Current – federal	$	28,749	$	15,215	$	10,499
Current - state		3,550		1,026		467
Deferred - federal		2,460		(344)		6,516
Deferred - state		(1,613)		-		-
	$	33,146	$	15,897	$	17,482

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,
	2016		2015		2014
	(dollars in thousands)
Tax at federal income tax rate	$	36,836	$	19,860	$	19,672
Change resulting from:
Tax-exempt interest		(3,916)		(2,490)		(1,647)
Increase in cash value of bank owned life insurance		(607)		(484)		(568)
State income tax, net of federal benefit		695		667		304
Other		138		(1,656)		(279)
Provision for income taxes	$	33,146	$	15,897	$	17,482

Components of Deferred Income Taxes

The components of deferred income taxes are as follows:

	December 31,
	2016		2015
	(dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	8,731	$	7,372
Deferred compensation		1,648		1,202
Deferred gain on interest rate swap		296		381
Unrealized loss on interest rate swap		342		504
Nonaccrual interest		17		49
Purchase accounting adjustments		13,444		10,825
Goodwill and intangible assets		7,488		9,357
Other real estate owned		6,244		8,597
Net operating loss tax carryforward		26,414		11,179
AMT credit carryforward		813		-
Unrealized loss on securities available for sale		665		-
Capitalized costs, accrued expenses and other		680		200
		66,782		49,666
Deferred tax liabilities
Depreciation and amortization		6,188		5,591
Mortgage servicing rights		1,412		715
Subordinated debentures		9,428		7,732
FDIC-assisted transaction adjustments		8,978		14,446
Unrealized gain on securities available for sale		-		1,723
		26,006		30,207
Net deferred tax asset	$	40,776	$	19,459