Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

The following is a summary of consolidated income tax expense:



	Years ended
(Dollars in thousands)	December 31, 2014		December 31, 2013	December 31, 2012
Current
Federal	$	21,860	18,377	12,718
State	8,118		7,007	5,522
Total current income tax expense	29,978		25,384	18,240
Deferred
Federal	5,016		3,918	708
State	915		715	129
Total deferred income tax expense	5,931		4,633	837
Total income tax expense	$	35,909	30,017	19,077

Combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows:



	Years ended
	December 31, 2014		December 31, 2013		December 31, 2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal income tax benefit	4.0	%	4.0	%	3.9	%
Tax-exempt interest income	(11.5	)%	(12.2	)%	(14.0	)%
Tax credits	(2.8	)%	(3.2	)%	(4.2	)%
Other, net	(0.5	)%	0.3	%	(0.5	)%
Effective tax rate	24.2	%	23.9	%	20.2	%

The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows:



(Dollars in thousands)	December 31, 2014			December 31, 2013
Deferred tax assets
Allowance for loan and lease losses	$	50,013		50,652
Other real estate owned	8,200			8,041
Interest rate swap agreements	6,467			—
Acquisition fair market value adjustments	5,302			4,151
Deferred compensation	5,024			4,837
Income tax credits and net operating loss carryforwards	4,652			2,778
Employee benefits	2,839			3,132
Other	4,290			3,662
Total gross deferred tax assets	86,787			77,253
Deferred tax liabilities
Available-for-sale securities	(17,716		)	(5,402	)
FHLB stock dividends	(10,342		)	(10,359	)
Deferred loan costs	(6,419		)	(6,058	)
Intangibles	(4,290		)	(3,099	)
Depreciation of premises and equipment	(2,358		)	(3,939	)
Interest rate swap agreements	—			(736	)
Other	(3,925		)	(4,111	)
Total gross deferred tax liabilities	(45,050		)	(33,704	)
Net deferred tax asset	$	41,737		43,549

The following schedule summarizes the years that remain subject to examination as of December 31, 2014: