Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for continuing operations for the years ended December 31, 2018, 2017, and 2016 are as follows:



	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Current expense:
Federal	$	20,165	$	17,176	$	20,237
State	12,152		6,509		7,778
Total current expense	32,317		23,685		28,015
Deferred expense:
Federal	2,857		19,820		1,976
State	2,363		2,691		972
Total deferred expense	5,220		22,511		2,948
Income tax expense	$	37,537	$	46,196	$	30,963

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense attributable to income from continuing operations differs from the amounts computed by applying the Federal statutory rate to pre-tax income from continuing operations. Reconciliations between the Federal statutory income tax rate of 21% to the effective income tax rate for the year ended December 31, 2018 and the federal statutory income tax rate of 35% to the effective income tax rate for the years ended December 31, 2017 and 2016 are as follows:



	Year Ended December 31,
	2018		2017		2016
Statutory Federal income tax rate	21.0	%	35.0	%	35.0	%
Increase/ (decrease) resulting from:
State and local income tax, net of Federal tax benefit	9.6	%	6.9	%	5.6	%
Book versus tax difference	6.7	%	—	%	—	%
Tax-exempt interest, net	(4.8	)%	(10.3	)%	(7.5	)%
Tax credits	(2.9	)%	(3.1	)%	(2.2	)%
Investments in affordable housing projects	1.9	%	2.2	%	0.9	%
Noncontrolling interests	(0.5	)%	(1.5	)%	(1.4	)%
Re-measurement of deferred tax assets and liabilities	—	%	13.7	%	—	%
Nondeductible goodwill	—	%	10.1	%	—	%
Other, net	0.4	%	0.5	%	0.2	%
Effective income tax rate	31.4	%	53.5	%	30.6	%

Schedule of Deferred Tax Assets and Liabilities

The components of gross deferred tax assets and gross deferred tax liabilities at December 31, 2018 and 2017 are as follows:



	December 31,
	2018		2017
	(In thousands)
Gross deferred tax assets:
Allowance for loan and OREO losses	$	21,919	$	22,782
Interest on nonaccrual loans	254		295
Stock compensation	2,679		3,156
Deferred and accrued compensation	15,540		11,822
Contingent payments	—		1,236
Unrealized loss on investments	6,781		3,345
Other	1,294		1,437
Gross deferred tax assets	48,467		44,073
Total deferred tax assets	48,467		44,073
Gross deferred tax liabilities:
Deferred income on repurchase of debt	—		832
Goodwill and acquired intangible assets	11,492		12,246
Fixed assets	2,248		991
Prepaid expenses	344		347
Contingent payments	7,680		—
Other	65		626
Total gross deferred tax liabilities	21,829		15,042
Net deferred tax asset	$	26,638	$	29,031

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits under the provisions of ASC 740-10 is as follows:



	2018			2017			2016
	(In thousands)
Balance at January 1	$	1,025		$	974		$	1,022
Additions based on tax positions related to the current year	149			183			160
Additions based on tax positions taken in prior years	—			227			—
Decreases based on the expiration of statute of limitations	(239		)	(359		)	(208		)
Balance at December 31	$	935		$	1,025		$	974