Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The following table is a summary of consolidated income tax expense:



	Years ended
(Dollars in thousands)	December 31, 2015			December 31, 2014	December 31, 2013
Current
Federal	$	28,705		21,860	18,377
State	9,374			8,118	7,007
Total current income tax expense	38,079			29,978	25,384
Deferred ¹
Federal	(3,451		)	5,016	3,918
State	(629		)	915	715
Total deferred income tax (benefit) expense	(4,080		)	5,931	4,633
Total income tax expense	$	33,999		35,909	30,017

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¹	Includes tax benefit of operating loss carryforwards of $391,000, $0 and $0 for the years ended December 31, 2015, 2014, and 2013, respectively.

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



	Years ended
	December 31, 2015		December 31, 2014		December 31, 2013
Federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal income tax benefit	3.7	%	4.0	%	4.0	%
Tax-exempt interest income	(12.6	)%	(11.5	)%	(12.2	)%
Tax credits	(3.0	)%	(2.8	)%	(3.2	)%
Other, net	(0.5	)%	(0.5	)%	0.3	%
Effective tax rate	22.6	%	24.2	%	23.9	%

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, 2015			December 31, 2014
Deferred tax assets
Allowance for loan and lease losses	$	50,123		50,013
Other real estate owned	8,380			8,200
Deferred compensation	8,166			5,024
Interest rate swap agreements	7,554			6,467
Acquisition fair market value adjustments	5,842			5,302
Income tax credits and net operating loss carryforwards	3,590			4,652
Employee benefits	3,165			2,839
Other	5,433			4,290
Total gross deferred tax assets	92,253			86,787
Deferred tax liabilities
Available-for-sale securities	(8,812		)	(17,716	)
Deferred loan costs	(7,427		)	(6,419	)
Intangibles	(6,272		)	(4,290	)
FHLB stock dividends	(4,601		)	(10,342	)
Depreciation of premises and equipment	(2,376		)	(2,358	)
Other	(4,290		)	(3,925	)
Total gross deferred tax liabilities	(33,778		)	(45,050	)
Net deferred tax asset	$	58,475		41,737

The following schedule summarizes the years that remain subject to examination as of December 31, 2015: