Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

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 June 30,									Six Months Ended June 30,
(dollars in thousands)	2020			2019			2020			2019
Provision at statutory rate of 21%	$	12,908		$	16,238		$	18,279		$	30,808
Tax-exempt income:
Tax-exempt interest	(2,671)			(2,604)			(5,303)			(5,135)
Section 291/265 interest disallowance	44			123			116			234
Company-owned life insurance income	(623)			(569)			(1,270)			(1,239)
Tax-exempt income	(3,250)			(3,050)			(6,457)			(6,140)
State income taxes	1,718			1,558			1,711			3,558
Interim period effective rate adjustment	75			353			3,341			1,041
Tax credit investments - federal	(1,819)			(715)			(3,720)			(1,134)
Other, net	129			(25)			(454)			(670)
Income tax expense	$	9,761		$	14,359		$	12,700		$	27,463
Effective tax rate	15.9		%	18.6		%	14.6		%	18.7		%

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

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


(dollars in thousands)	June 30, 2020		December 31, 2019
Deferred Tax Assets
Allowance for loan losses, net of recapture	$	34,576	$	14,179
Benefit plan accruals	13,507		19,673
Alternative minimum tax credit	—		1,272
Net operating loss carryforwards	19,238		25,336

Deferred gain on securities	3,027		3,754
Acquired loans	13,902		16,784
Operating lease liabilities	25,845		26,503



Tax credit investments and other partnerships	2,567		1,765
Other real estate owned	138		141
Other, net	750		591
Total deferred tax assets	113,550		109,998
Deferred Tax Liabilities

Purchase accounting	(18,309)		(17,564)
Loan servicing rights	(5,964)		(6,289)
Premises and equipment	(8,097)		(12,167)
Prepaid expenses	(973)		(973)
Operating lease right-of-use assets	(22,922)		(25,448)
Unrealized gains on available-for-sale investment securities	(41,068)		(15,751)
Unrealized gains on hedges	(1,418)		(78)
Other, net	(1,752)		(2,023)
Total deferred tax liabilities	(100,503)		(80,293)
Net deferred tax assets	$	13,047	$	29,705