INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The provision for income taxes is comprised of the following components:

	Years Ended December 31
	2014			2013		2012
	(Dollars in thousands)
Current expense
Federal	$	14,709		$	9,570	$	11,928
State	6,350			4,357		4,664
Total current expense	21,059			13,927		16,592
Deferred expense (benefit)
Federal	2,877			1,598		(1,183		)
State	(37		)	959		(736		)
Total deferred expense (benefit)	2,840			2,557		(1,919		)
Total expense	$	23,899		$	16,484	$	14,673

Schedule of Income Tax Rate Reconciliation

The difference between the statutory federal income tax rate of 35% and the effective income tax rate reported for the last three years is detailed below:

	Years Ended December 31
	2014					2013					2012
	(Dollars in thousands)
Computed statutory federal income tax provision	$	29,310		35.00	%	$	23,359		35.00	%	$	20,055		35.00	%
State taxes, net of federal tax benefit	4,104			4.90	%	3,455			5.17	%	2,553			4.46	%
Nontaxable interest, net	(795		)	(0.95	)%	(557		)	(0.83	)%	(542		)	(0.95	)%
New Market Tax Credits	(6,708		)	(8.01	)%	(9,000		)	(13.48	)%	(6,371		)	(11.12	)%
Low Income Housing Project Investments	(594		)	(0.71	)%	(194		)	(0.29	)%	(196		)	(0.34	)%
Increase in cash surrender value of life insurance and tax exempt gain on benefit payments	(1,782		)	(2.13	)%	(1,209		)	(1.81	)%	(1,612		)	(2.81	)%
Merger and other related costs (non-deductible)	274			0.33	%	366			0.55	%	404			0.71	%
Other, net	90			0.11	%	264			0.39	%	382			0.66	%
Total expense	$	23,899		28.54	%	$	16,484		24.70	%	$	14,673		25.61	%

Schedule of Net Deferred Tax Asset

The tax-effected components of the net deferred tax asset at December 31 were as follows:

	2014		2013
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	10,666	$	8,530
Allowance for loan losses	22,462		21,743
Deferred gain on sale leaseback transaction	2,579		3,104
Derivatives fair value adjustment	1,882		3,440
Employee and director equity compensation	2,380		2,351
Federal Home Loan Bank borrowings fair value adjustment	83		220
Loan basis difference fair value adjustment	2,094		1,819
Net operating loss carry-forward	230		1,671
Net unrealized loss on securities available for sale	—		1,418
New Markets Tax Credit carry-forward	521		2,257
Other-than-temporary impairment on securities	4,072		4,074
Other	1,426		1,481
Total	$	48,395	$	52,108
Deferred tax liabilities
Core deposit and other intangibles	$	3,194	$	4,052
Deferred loan fees, net	4,164		3,530
Fixed assets	4,875		5,571
Goodwill	14,194		13,030
Net unrealized gain on securities available for sale	2,075		—
Other	1,180		956
Total	$	29,682	$	27,139
Total net deferred tax asset	$	18,713	$	24,969

Reconciliation of Unrecognized Tax Benefits

The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	(Dollars in thousands)
Balance at December 31, 2012	$	126
Reduction of tax positions for prior years	(113		)
Increase for prior year tax position	42
Increase for current year tax positions	—
Balance at December 31, 2013	$	55
Reduction of tax positions for prior years	(55		)
Increase for prior year tax positions	—
Increase for current year tax positions	—
Balance at December 31, 2014	$	—