Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of the provision for income taxes for the years ended December 31, 2019, 2018, and 2017 were as follows, in thousands:

	2019		2018		2017
Current:
Federal	$	24,106	$	16,769	$	25,532
State	11,298		8,686		5,025
Total current expense	$	35,404	$	25,455	$	30,557
Deferred:
Federal	$	760	$	2,615	$	12,370
State	(1,174)		145		893
Total deferred expense (benefit)	$	(414)	$	2,760	$	13,263
Total income tax expense	$	34,990	$	28,215	$	43,820

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2019 and 2018, were as follows, in thousands:

	2019		2018
Deferred tax assets:
Tax effect of net unrealized loss on securities carried at fair value reflected in stockholders’ equity	$	—	$	11,148
Tax effect of net unrealized loss on derivatives reflected in stockholders’ equity	563		—
Allowance for loan losses	17,686		16,682
Deferred compensation	8,071		7,042
Organization and acquisitions costs	337		319
Net operating loss carryforwards	18,459		14,495
Non-accrual loan interest	853		863
OREO write-downs	921		1,469
Tax credit projects	4,252		5,254
Other	2,643		1,961
Gross deferred tax assets	53,785		59,233
Valuation allowance	(12,379)		(12,125)
Gross deferred tax assets	$	41,406	$	47,108

Deferred tax liabilities:
Tax effect of net unrealized gain on securities carried at fair value reflected in stockholders’ equity	$	(279)	$	—
Tax effect of net unrealized gain on derivatives reflected in stockholders’ equity	—		(160)
Securities	(4,240)		(2,332)
Premises, furniture and equipment	(6,232)		(6,514)
Tax bad debt reserves	(422)		(427)
Purchase accounting	(7,824)		(6,339)
Prepaid expenses	(2,176)		(203)
Servicing rights	(1,421)		(7,933)
Deferred loan fees	(3,342)		(3,321)
Other	(1,870)		(380)
Gross deferred tax liabilities	$	(27,806)	$	(27,609)
Net deferred tax asset	$	13,600	$	19,499

Schedule of Effective Income Tax Rate Reconciliation

The actual income tax expense from continuing operations differs from the expected amounts for the years ended December 31, 2019, 2018, and 2017, (computed by applying the U.S. federal corporate tax rate of 21% for 2019 and 2018 income before income taxes and 35% for 2017 income before income taxes) are as follows, in thousands:

	2019			2018			2017
Computed "expected" tax on net income	$	38,665		$	30,495		$	41,682
Increase (decrease) resulting from:
Nontaxable interest income	(3,281)			(4,423)			(9,282)
State income taxes, net of federal tax benefit	8,509			6,976			3,846
Tax credits	(6,860)			(4,085)			(2,390)
Valuation allowance	(1,648)			23			405
Excess tax benefit on stock compensation	(229)			(657)			(1,130)
Deferred tax adjustment due to Tax Cuts and Jobs Act enactment	—			—			10,396
Other	(166)			(114)			293
Income taxes	$	34,990		$	28,215		$	43,820
Effective tax rates	19.0		%	19.4		%	36.8		%