Income Taxes

(In Thousands)

The following table is a summary of the Company's temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities and their approximate tax effects as of the dates indicated.



	September 30,					December 31,
	2016		2015			2015
Deferred tax assets
Allowance for loan losses	$	21,418	$	21,178		$	17,430
Loans	24,299		27,920			26,239
Deferred compensation	12,368		17,681			17,060
Securities	2,346		2,581			2,572
Net unrealized losses on securities - OCI	4,016		3,717			6,065
Impairment of assets	3,877		3,108			3,271
Federal and State net operating loss carryforwards	3,113		5,519			3,681
Intangibles	1,012		—			—
Other	7,958		5,287			4,927
Gross deferred tax assets	80,407		86,991			81,245
Valuation allowance on state net operating loss carryforwards	—		—			—
Total deferred tax assets	80,407		86,991			81,245
Deferred tax liabilities
FDIC loss-share indemnification asset	1,939		2,814			1,927
Investment in partnerships	2,001		2,461			2,507
Core deposit intangible	—		4,023			3,386
Fixed assets	2,598		(20		)	673
Mortgage servicing rights	3,589		4,580			4,032
Junior subordinated debt	4,128		4,340			4,287
Other	4,294		569			2,364
Total deferred tax liabilities	18,549		18,767			19,176
Net deferred tax assets	$	61,858	$	68,224		$	62,069

The Company acquired federal and state net operating losses as part of the Heritage acquisition. The federal net operating loss acquired totaled $18,321, of which $7,124 remained to be utilized as of September 30, 2016, while state net operating losses totaled $17,168, of which $15,062 remained to be utilized as of September 30, 2016. Both the federal and state net operating losses will expire at various dates beginning in 2024.

The Company expects to utilize the federal and state net operating losses prior to expiration. Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the three and nine months ended September 30, 2016 and 2015 or the year ended December 31, 2015.