INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

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
	2019		2018			2017
	(Dollars in thousands)
Current expense
Federal	$	27,980	$	25,129		$	28,852
State	14,359		13,672			9,278
Total current expense	42,339		38,801			38,130
Deferred expense (benefit)
Federal	9,080		(3,080		)	7,953
State	1,514		(1,417		)	1,258
Total deferred expense (benefit)	10,594		(4,497		)	9,211
Total expense	$	52,933	$	34,304		$	47,341

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
	2019					2018					2017
	(Dollars in thousands)
Computed statutory federal income tax provision	$	45,803		21.00	%	$	32,744		21.00	%	$	47,091		35.00	%
State taxes, net of federal tax benefit	12,262			5.63	%	9,633			6.18	%	6,817			5.07	%
Merger and other related costs (non-deductible)	582			0.27	%	130			0.08	%	213			0.16	%
Change in valuation allowance	17			0.01	%	49			0.03	%	31			0.02	%
Revaluation of net deferred tax assets	—			—	%	—			—	%	1,895			1.41	%
New Markets Tax Credits	(2,675		)	(1.23	)%	(3,960		)	(2.54	)%	(3,960		)	(2.94	)%
Increase in cash surrender value of life insurance	(1,144		)	(0.52	)%	(1,160		)	(0.74	)%	(1,445		)	(1.07	)%
Low Income Housing Project Investments	(1,696		)	(0.78	)%	(1,030		)	(0.66	)%	(1,253		)	(0.93	)%
Stock-based compensation	(824		)	(0.38	)%	(885		)	(0.57	)%	(1,258		)	(0.94	)%
Nontaxable interest, net	(757		)	(0.35	)%	(566		)	(0.36	)%	(987		)	(0.73	)%
Other, net	1,365			0.63	%	(651		)	(0.42	)%	197			0.15	%
Total expense	$	52,933		24.28	%	$	34,304		22.00	%	$	47,341		35.20	%

Schedule of Net Deferred Tax Asset

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

	2019			2018
	(Dollars in thousands)
Deferred tax assets
Accrued expenses not deducted for tax purposes	$	13,855		$	11,922
Allowance for loan losses	18,993			17,764
Employee and director equity compensation	1,708			1,636
Loan basis difference fair value adjustment	6,804			4,761
Net operating loss carry-forward	2,546			170
Net unrealized loss on securities available for sale	—			1,850
Operating lease liability	16,393			—
Other	1,311			1,561
Gross deferred tax assets	$	61,610		$	39,664
Valuation allowance	(187		)	(170		)
Total deferred tax assets net of valuation allowance	$	61,423		$	39,494
Deferred tax liabilities
Core deposit and other intangibles	$	5,802		$	3,803
Deferred loan fees, net	4,944			4,759
Derivatives fair value adjustment	6,461			2,413
Fixed assets	8,194			5,259
Goodwill	10,645			10,388
Prepaid pension	3,487			3,483
Right of use asset	15,911			—
Other	3,965			1,139
Gross deferred tax liabilities	$	59,409		$	31,244
Total net deferred tax asset	$	2,014		$	8,250

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, 2017	$	142
Increase for current year tax positions	73
Balance at December 31, 2018	215
Reduction of tax positions for prior years	(127		)
Increase for current year tax positions	444
Balance at December 31, 2019	$	532