INCOME TAXES INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense consisted of the following components:



(Dollars in thousands)	2018		2017			2016
Current expense
Federal	$	34,330	$	22,599		$	40,537
State	1,029		1,265			1,322
Total current expense	35,359		23,864			41,859
Deferred expense (benefit)
Federal	4,675		(4,657		)	528
State	1,592		169			(182		)
Total deferred expense (benefit)	6,267		(4,488		)	346
Income tax expense	$	41,626	$	19,376		$	42,205

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The difference between the federal income tax rates applied to income before income taxes, and the effective rates were due to the following:



(Dollars in thousands)	2018			2017			2016
Income taxes computed at federal statutory rate on income before income taxes (21% in 2018; 35% in 2017 and 2016)	$	44,986		$	40,657		$	45,756
Benefit from tax-exempt income	(4,499		)	(3,427		)	(2,911		)
Tax credits	(5,439		)	(16,806		)	(2,691		)
Tax rate reduction impact	0			(8,191		)	0
Basis reduction on historic tax credit	0			4,599			0
Tax benefit of equity compensation	(565		)	(1,449		)	(72		)
State income taxes, net of federal tax benefit	2,070			932			741
Affordable housing investments	4,725			2,798			1,923
Other	348			263			(541		)
Income tax expense	$	41,626		$	19,376		$	42,205

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The major components of the temporary differences that gave rise to deferred tax assets and liabilities at December 31, 2018, and 2017, were as follows:



(Dollars in thousands)	2018			2017
Deferred tax assets
Allowance for loan and lease losses	$	12,782		$	12,134
Fair value adjustments on business combinations	11,199			369
Deferred compensation	392			384
Postretirement benefits other than pension liability	676			564
Accrued stock-based compensation	1,145			932
OREO write-downs	118			97
Interest on nonaccrual loans	1,160			616
Accrued expenses	5,808			3,051
Net unrealized losses on investment securities and derivatives	3,221			249
State net operating loss	3,119			0
Federal tax credit carryforwards	873			0
Other	425			339
Total deferred tax assets	40,918			18,735

Deferred tax liabilities
Tax depreciation in excess of book depreciation	(9,530		)	(2,510		)
FHLB and FRB stock	(4,044		)	(3,384		)
Mortgage-servicing rights	(2,285		)	(343		)
Leasing activities	(3,881		)	(2,792		)
Retirement obligation	(6,614		)	(8,888		)
Intangible assets	(12,310		)	(11,559		)
Deferred loan fees and costs	(131		)	(371		)
Prepaid expenses	(582		)	(210		)
Limited partnership investments	(2,367		)	(1,230		)
Other	(1,867		)	(2,415		)
Total deferred tax liabilities	(43,611		)	(33,702		)
Total net deferred tax liability	$	(2,693	)	$	(14,967	)

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

A progression of unrecognized tax benefits as of December 31, 2018 and 2017 is as follows:



(Dollars in thousands)	2018		2017
Balance at beginning of year	$	3,735	$	3,735
Additions for tax positions of prior years	0		0
Balance at end of year	$	3,735	$	3,735