INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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
	2018			2017		2016
	(Dollars in thousands)
Current expense
Federal	$	25,129		$	28,852	$	26,549
State	13,672			9,278		8,883
Total current expense	38,801			38,130		35,432
Deferred expense (benefit)
Federal	(3,080		)	7,953		153
State	(1,417		)	1,258		(158		)
Total deferred expense (benefit)	(4,497		)	9,211		(5		)
Total expense	$	34,304		$	47,341	$	35,427

Schedule of Income Tax Rate Reconciliation

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

	Years Ended December 31
	2018					2017					2016
	(Dollars in thousands)
Computed statutory federal income tax provision	$	32,744		21.00	%	$	47,091		35.00	%	$	39,226		35.00	%
State taxes, net of federal tax benefit	9,633			6.18	%	6,817			5.07	%	5,643			5.03	%
Merger and other related costs (non-deductible)	130			0.08	%	213			0.16	%	210			0.19	%
Change in valuation allowance	49			0.03	%	31			0.02	%	28			0.02	%
Revaluation of net deferred tax assets	—			—	%	1,895			1.41	%	—			—	%
New Markets Tax Credits	(3,960		)	(2.54	)%	(3,960		)	(2.94	)%	(6,360		)	(5.67	)%
Increase in cash surrender value of life insurance	(1,160		)	(0.74	)%	(1,445		)	(1.07	)%	(1,431		)	(1.28	)%
Low Income Housing Project Investments	(1,030		)	(0.66	)%	(1,253		)	(0.93	)%	(1,641		)	(1.46	)%
Stock-based compensation	(885		)	(0.57	)%	(1,258		)	(0.94	)%	—			—	%
Nontaxable interest, net	(566		)	(0.36	)%	(987		)	(0.73	)%	(996		)	(0.89	)%
Other, net	(651		)	(0.42	)%	197			0.15	%	748			0.67	%
Total expense	$	34,304		22.00	%	$	47,341		35.20	%	$	35,427		31.61	%

Schedule of Net Deferred Tax Asset

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

	2018			2017
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	11,922		$	9,268
Allowance for loan losses	17,764			16,702
Deferred gain on sale leaseback transaction	704			909
Employee and director equity compensation	1,636			1,559
Federal Home Loan Bank borrowings fair value adjustment	15			26
Loan basis difference fair value adjustment	4,761			3,070
Net operating loss carry-forward	170			127
Net unrealized loss on securities available for sale	1,850			106
Other	842			527
Gross deferred tax assets	39,664			32,294
Valuation allowance	(170		)	(121		)
Total deferred tax assets net of valuation allowance	$	39,494		$	32,173
Deferred tax liabilities
Core deposit and other intangibles	$	3,803		$	2,057
Deferred loan fees, net	4,759			4,275
Derivatives fair value adjustment	2,413			524
Fixed assets	5,259			5,270
Goodwill	10,388			10,265
Prepaid pension	3,483			3,056
Other	1,139			1,251
Gross deferred tax liabilities	$	31,244		$	26,698
Total net deferred tax asset	$	8,250		$	5,475

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, 2016	$	111
Increase for current year tax positions	31
Balance at December 31, 2017	142
Increase for current year tax positions	73
Balance at December 31, 2018	$	215