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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES At December 31, income tax expense consisted of the following:
(Dollars in thousands) | 2016 |  | 2015 |  | 2014
Current tax expense |  |  |  |  |
Federal | $ | 84,946 |  |  | $ | 105,367 |  |  | $ | 84,430 |
State | 7,493 |  |  | 16,111 |  |  | 13,941 |
Total current tax expense | 92,439 |  |  | 121,478 |  |  | 98,371 |
Deferred tax expense (benefit) |  |  |  |  |
Federal | 23,144 |  |  | (2,758 | ) |  | (30,658 | )
State | 10,002 |  |  | 3,308 |  |  | (2,681 | )
Total deferred tax (benefit) expense | 33,146 |  |  | 550 |  |  | (33,339 | )
Total income tax expense | $ | 125,585 |  |  | $ | 122,028 |  |  | $ | 65,032 |
Income tax expense does not reflect the tax effects of unrealized gains and losses, the net change from defined benefit pension plans and other income and expenses recorded in accumulated other comprehensive income (AOCI). Income tax expense differed from the amounts computed by applying the federal income tax rate of 35 percent to pretax income as a result of the following:
(Dollars in thousands) | 2016 |  | 2015 |  | 2014
Income taxes at federal statutory rates | $ | 122,874 |  |  | $ | 116,345 |  |  | $ | 71,258 |
Increase (reduction) in income taxes resulting from: |  |  |  |  |
Nontaxable income on loans, leases and investments, net of nondeductible expenses | (2,901 | ) |  | (3,020 | ) |  | (1,832 | )
State and local income taxes, including change in valuation allowance, net of federal income tax benefit | 11,372 |  |  | 12,622 |  |  | 7,319 |
Acquisition stock settlement | (98 | ) |  | — |  |  | (10,185 | )
Tax credits net of amortization | (4,138 | ) |  | (3,060 | ) |  | (2,896 | )
Other, net | (1,524 | ) |  | (859 | ) |  | 1,368 |
Total income tax expense | $ | 125,585 |  |  | $ | 122,028 |  |  | $ | 65,032 |
The net deferred tax asset included the following components at December 31:
(Dollars in thousands) | 2016 |  | 2015
Allowance for loan and lease losses | $ | 80,939 |  |  | $ | 78,878 |
Pension liability | 15,679 |  |  | 7,206 |
Executive separation from service agreements | 14,278 |  |  | 9,856 |
State net operating loss carryforward | — |  |  | 21 |
Federal net operating loss carryforward from Cordia acquisition | 5,019 |  |  | — |
Unrealized loss on cash flow hedge | — |  |  | 537 |
Net unrealized loss on securities included in accumulated other comprehensive loss | 26,832 |  |  | 9,379 |
Accelerated depreciation | 133 |  |  | 13,195 |
FDIC assisted transactions timing differences | 52,579 |  |  | 66,456 |
Other reserves | 10,504 |  |  | 10,772 |
Other | 26,663 |  |  | 29,279 |
Deferred tax asset | 232,626 |  |  | 225,579 |
Lease financing activities | 11,651 |  |  | 15,492 |
Net deferred loan fees and costs | 10,867 |  |  | 6,051 |
Intangible assets | 6,335 |  |  | 2,040 |
Security, loan and debt valuations | 22,656 |  |  | 31,486 |
Other | 8,501 |  |  | 12,026 |
Deferred tax liability | 60,010 |  |  | 67,095 |
Net deferred tax asset | $ | 172,616 |  |  | $ | 158,484 |
At December 31, 2016, $14.3 million of existing gross deferred tax assets relate to net operating loss carryforwards which expire in years beginning in 2024 through 2034. The net operating losses were acquired through the acquisition of Cordia and are subject to the annual limitation set forth by Internal Revenue Code Section 382. No valuation allowance was necessary at December 31, 2016 or 2015 to reduce BancShares’ gross deferred tax asset to the amount that is more likely than not to be realized. During the third quarters of 2016 and 2015, BancShares adjusted its net deferred tax asset as a result of reductions in the North Carolina corporate income tax rate that were enacted July 23, 2013. The lower corporate income tax rate resulted in a reduction in the deferred tax asset and an increase in income tax expense in 2016 and 2015. The lower state corporate income tax rate did not have a material impact on income tax expense. On October 1, 2014, Bancorporation merged with and into BancShares in a statutory merger treated as a "reorganization" within the meaning of section 368(a) of the Internal Revenue Code of 1986 as amended. Income tax expense in 2014 was adjusted for the settlement of the ownership of Bancorporation stock at the date of the merger. Income tax expense was also adjusted for the revaluation of the acquired deferred inventory to reflect the rates that will apply under currently enacted tax law when the temporary differences are expected to reverse. BancShares and its subsidiaries' federal income tax returns for 2013 through 2015 remain open for examination. Generally, the state jurisdictions in which BancShares files income tax returns are subject to examination for a period up to four years after returns are filed. BancShares state tax returns are currently under exam by North Carolina for 2012 and Missouri for 2011 through 2015. The following table provides a rollforward of Bancshares’ gross unrecognized tax benefits, excluding interest and penalties, during the years ended December 31:
(Dollars in thousands) | 2016 |  | 2015 |  | 2014
Unrecognized tax benefits at the beginning of the year | $ | 5,975 |  |  | $ | 3,865 |  |  | $ | 2,823 |
Reductions related to tax positions taken in prior year | (327 | ) |  | (79 | ) |  | — |
Additions related to tax positions taken in current year | 23,231 |  |  | 2,189 |  |  | 1,042 |
Settlements | — |  |  | — |  |  | — |
Unrecognized tax benefits at the end of the year | $ | 28,879 |  |  | $ | 5,975 |  |  | $ | 3,865 |
All of the unrecognized tax benefits, if recognized, would affect Bancshares’ effective tax rate. BancShares has unrecognized tax benefits relating to uncertain state tax positions in North Carolina and other state jurisdictions resulting from tax filings submitted to the states. No tax benefit has been recorded for these uncertain tax positions in the financial statements. Bancshares does not expect the unrecognized tax benefits to change significantly during 2017. BancShares recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. For the years ended December 31, 2016, 2015 and 2014, Bancshares recorded $357 thousand, $298 thousand and $1.1 million which primarily represent accrued interest.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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