Income Taxes (Tables)

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate

Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:

	Three Months Ended March 31,
(dollars in thousands)	2020			2019
Provision at statutory rate of 21%	$	5,372		$	14,570
Tax-exempt income:
Tax-exempt interest	(2,632)			(2,531)
Section 291/265 interest disallowance	73			111
Company-owned life insurance income	(647)			(669)
Tax-exempt income	(3,206)			(3,089)
State income taxes	(8)			1,999
Interim period effective rate adjustment	3,267			688
Tax credit investments - federal	(1,902)			(420)
Other, net	(584)			(644)
Income tax expense	$	2,939		$	13,104
Effective tax rate	11.5		%	18.9		%

Schedule of Significant Components of Net Deferred Tax Assets (Liabilities)

Significant components of net deferred tax assets (liabilities) were as follows:

(dollars in thousands)	March 31, 2020		December 31, 2019
Deferred Tax Assets
Allowance for loan losses, net of recapture	$	28,603	$	14,179
Benefit plan accruals	13,268		19,673
Alternative minimum tax credit	1,272		1,272
Net operating loss carryforwards	21,575		25,336
Federal tax credits	3,238		—
Deferred gain on securities	3,339		3,754
Acquired loans	15,341		16,784
Operating lease liabilities	25,591		26,503
Tax credit investments and other partnerships	2,808		1,765
Other real estate owned	143		141
Other, net	790		591
Total deferred tax assets	115,968		109,998
Deferred Tax Liabilities
Purchase accounting	(18,187)		(17,564)
Loan servicing rights	(5,989)		(6,289)
Premises and equipment	(8,139)		(12,167)
Prepaid expenses	(973)		(973)
Operating lease right-of-use assets	(23,285)		(25,448)
Unrealized gains on available-for-sale investment securities	(38,162)		(15,751)
Unrealized gains on hedges	(1,889)		(78)
Other, net	(1,768)		(2,023)
Total deferred tax liabilities	(98,392)		(80,293)
Net deferred tax assets	$	17,576	$	29,705