Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of the provision for income taxes

Significant components of the provision for income taxes (benefits) are as follows for the periods presented:



	Year Ended December 31,
	2016		2015		2014
Current
Federal	$	31,679	$	17,004	$	16,474
State	2,131		995		540
	33,810		17,999		17,014
Deferred
Federal	10,480		12,625		8,649
State	557		1,126		642
	11,037		13,751		9,291
	$	44,847	$	31,750	$	26,305

Components of the Company's investments in qualified affordable housing projects were included in the line item “Income taxes” in the Consolidated Statements of Income for the periods presented:



	Year Ended
	December 31,
	2016			2015
Investment amortization	$	1,335		$	1,328
Tax credits and other benefits	(1,927		)	(1,883		)
Total	$	(592	)	$	(555	)

Reconciliation of income taxes computed at the United States federal statutory tax rates

The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows:



	Year Ended December 31,
	2016			2015			2014
Tax at U.S. statutory rate	$	47,522		$	34,918		$	30,061
Increase (decrease) in taxes resulting from:
Tax-exempt interest income	(3,467		)	(3,377		)	(3,215		)
BOLI income	(1,622		)	(1,264		)	(1,045		)
Investment tax credits	(1,390		)	(1,390		)	(1,390		)
Amortization of investment in low-income housing tax credits	1,742			1,734			1,594
State income tax expense, net of federal benefit	1,747			1,378			921
Decrease to valuation allowance	—			—			(152		)
Other items, net	315			(249		)	(469		)
	$	44,847		$	31,750		$	26,305

Significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:



	December 31,
	2016		2015
Deferred tax assets
Allowance for loan losses	$	19,934	$	17,430
Loans	23,240		26,239
Deferred compensation	11,254		17,060
Net unrealized losses on securities	10,096		6,065
Impairment of assets	2,512		3,271
Net operating loss carryforwards	2,867		3,681
Other	7,149		7,499
Gross deferred tax assets	77,052		81,245
Valuation allowance on state net operating loss carryforwards	—		—
Total deferred tax assets	77,052		81,245
Deferred tax liabilities
FDIC indemnification asset	—		1,927
Investment in partnerships	1,556		2,507
Core deposit intangible	—		3,386
Depreciation	2,517		673
Mortgage servicing rights	3,360		4,032
Subordinated debt	4,111		4,287
Other	2,876		2,364
Total deferred tax liabilities	14,420		19,176
Net deferred tax assets	$	62,632	$	62,069

Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 is as follows:



	2016		2015			2014
Balance at January 1	$	1,485	$	2,653		$	2,178
Additions based on positions related to current period	25		367			475
Additions based on positions related to prior period	—		—			—
Reductions based on positions related to prior period	—		(201		)	—
Settlements	—		(1,334		)	—
Reductions due to lapse of statute of limitations	—		—			—
Balance at December 31	$	1,510	$	1,485		$	2,653