INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

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
	2015		2014			2013
	(Dollars in thousands)
Current expense
Federal	$	11,946	$	14,709		$	9,570
State	5,052		6,350			4,357
Total current expense	16,998		21,059			13,927
Deferred expense (benefit)
Federal	8,466		2,877			1,598
State	1,754		(37		)	959
Total deferred expense (benefit)	10,220		2,840			2,557
Total expense	$	27,218	$	23,899		$	16,484

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
	2015					2014					2013
	(Dollars in thousands)
Computed statutory federal income tax provision	$	32,262		35.00	%	$	29,310		35.00	%	$	23,359		35.00	%
State taxes, net of federal tax benefit	4,500			4.88	%	4,104			4.90	%	3,455			5.17	%
Nontaxable interest, net	(973		)	(1.06	)%	(795		)	(0.95	)%	(557		)	(0.83	)%
New Markets Tax Credits	(6,514		)	(7.07	)%	(6,708		)	(8.01	)%	(9,000		)	(13.48	)%
Low Income Housing Project Investments	(1,182		)	(1.28	)%	(594		)	(0.71	)%	(194		)	(0.29	)%
Increase in cash surrender value of life insurance and tax exempt gain on benefit payments	(1,292		)	(1.40	)%	(1,782		)	(2.13	)%	(1,209		)	(1.81	)%
Merger and other related costs (non-deductible)	185			0.20	%	274			0.33	%	366			0.55	%
Change in valuation allowance	41			0.04	%	—			—	%	—			—	%
Other, net	191			0.22	%	90			0.11	%	264			0.39	%
Total expense	$	27,218		29.53	%	$	23,899		28.54	%	$	16,484		24.70	%

Schedule of Net Deferred Tax Asset

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

	2015			2014
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	14,621		$	10,997
Allowance for loan losses	22,744			22,462
Deferred gain on sale leaseback transaction	2,158			2,579
Derivatives fair value adjustment	1,033			1,882
Employee and director equity compensation	2,466			2,380
Federal Home Loan Bank borrowings fair value adjustment	108			83
Loan basis difference fair value adjustment	3,789			2,094
Net operating loss carry-forward	41			213
New Markets Tax Credit carry-forward	459			521
Other-than-temporary impairment on securities	—			4,072
Other	451			2,141
Gross deferred tax assets	47,870			49,424
Valuation allowance	(41		)	—
Total deferred tax assets net of valuation allowance	$	47,829		$	49,424
Deferred tax liabilities
Core deposit and other intangibles	$	3,785		$	3,194
Deferred loan fees, net	4,872			4,164
Fixed assets	7,269			4,875
Goodwill	14,576			14,194
Net unrealized gain on securities available for sale	805			2,074
Other	2,468			2,210
Total	$	33,775		$	30,711
Total net deferred tax asset	$	14,054		$	18,713

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, 2013	$	55
Reduction of tax positions for prior years	(55		)
Increase for prior year tax position	—
Increase for current year tax positions	—
Balance at December 31, 2014	$	—
Reduction of tax positions for prior years	—
Increase for prior year tax positions	—
Increase for current year tax positions	81
Balance at December 31, 2015	$	81