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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Taxes |
Income Taxes | Note 11—Income Taxes The provision for income taxes consists of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
(Dollars in thousands) | ​ | 2019 | ​ | 2018 | ​ | 2017 |
Current: |  | ​ |  |  | ​ |  |  | ​ |  | ​
Federal | ​ | $ | 40,375 | ​ | $ | 25,275 | ​ | $ | 46,153 | ​
State | ​ |  | 4,965 | ​ |  | 6,783 | ​ |  | 3,018 | ​
Total current tax expense | ​ |  | 45,340 | ​ |  | 32,058 | ​ |  | 49,171 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | (1,598) | ​ |  | 12,557 | ​ |  | 31,971 | ​
State | ​ |  | 200 | ​ |  | 769 | ​ |  | 109 | ​
Total deferred tax expense | ​ |  | (1,398) | ​ |  | 13,326 | ​ |  | 32,080 | ​
Provision for income taxes | ​ | $ | 43,942 | ​ | $ | 45,384 | ​ | $ | 81,251 | ​
​ The provision for income taxes differs from that computed by applying the federal statutory income tax rate of 21% in 2018 and 2019 and 35% in prior years, to income before provision for income taxes, as indicated in the following analysis: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
(Dollars in thousands) | ​ | 2019 | ​ | 2018 | ​ | 2017 |
Income taxes at federal statutory rate |  | $ | 48,389 |  | $ | 47,094 |  | $ | 59,082 | ​
Increase (reduction) of taxes resulting from: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
State income taxes, net of federal tax benefit | ​ |  | 4,080 | ​ |  | 5,916 | ​ |  | 2,032 | ​
Non-deductible merger expenses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 586 | ​
Increase in cash surrender value of BOLI policies | ​ | ​ | (1,210) | ​ | ​ | (1,261) | ​ | ​ | (1,319) | ​
Tax-exempt interest | ​ |  | (1,877) | ​ |  | (2,037) | ​ |  | (2,840) | ​
Income tax credits | ​ |  | (6,881) | ​ |  | (3,118) | ​ |  | (1,951) | ​
Dividends received deduction | ​ |  | (2) | ​ |  | (5) | ​ |  | (12) | ​
Non-deductible FDIC premiums | ​ | ​ | 133 | ​ | ​ | 191 | ​ | ​ | — | ​
Revaluation of net deferred tax asset due to tax law change | ​ | ​ | — | ​ | ​ | (991) | ​ | ​ | 26,558 | ​
Other, net | ​ |  | 1,310 | ​ |  | (405) | ​ |  | (885) | ​
​ | ​ | $ | 43,942 | ​ | $ | 45,384 | ​ | $ | 81,251 | ​
​ ​ On December 22, 2017, the President signed into law the Tax Reform Act which, among other things, lowered the maximum corporate tax rate from 35% to 21% beginning in 2018. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. As a result of the Tax Reform Act, the Company revalued its deferred tax assets and liabilities through the provision for income taxes. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized a provisional tax impact of $26.6 million as additional income tax expense related to the revaluation of deferred tax assets and liabilities and included that amount in its consolidated financial statements for the year ended December 31, 2017. In addition to that, during 2018, the Company finalized its calculation for the revaluation of deferred tax assets and liabilities and recorded that impact in its consolidated financial statements for the year ended December 31, 2018. ​ The components of the net deferred tax asset are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, |
(Dollars in thousands) | ​ | 2019 | ​ | 2018 |
Allowance for loan losses |  | $ | 14,468 |  | $ | 12,953 | ​
Other-than-temporary impairment on securities | ​ |  | 250 | ​ |  | 257 | ​
Share-based compensation | ​ |  | 4,975 | ​ |  | 4,475 | ​
Pension plan and post-retirement benefits | ​ |  | 494 | ​ |  | 192 | ​
Deferred compensation | ​ |  | 12,475 | ​ |  | 11,841 | ​
Purchase accounting adjustments | ​ |  | 24,530 | ​ |  | 28,659 | ​
Other real estate owned | ​ |  | 380 | ​ |  | 455 | ​
Net operating loss and tax credit carryforwards | ​ |  | 10,347 | ​ |  | 11,572 | ​
Lease liability | ​ | ​ | 19,146 | ​ | ​ | — | ​
Cash flow hedge | ​ |  | 3,034 | ​ |  | 11 | ​
Unrealized losses on investment securities available for sale | ​ | ​ | — | ​ | ​ | 7,273 | ​
Other | ​ |  | 1,040 | ​ |  | 1,665 | ​
Total deferred tax assets | ​ |  | 91,139 | ​ |  | 79,353 | ​
Unrealized gains on investment securities available for sale | ​ |  | 2,373 | ​ |  | — | ​
Depreciation | ​ |  | 6,585 | ​ |  | 7,314 | ​
Intangible assets | ​ |  | 9,979 | ​ |  | 12,617 | ​
Net deferred loan costs | ​ |  | 9,082 | ​ |  | 9,409 | ​
Right of use assets | ​ | ​ | 19,465 | ​ | ​ | — | ​
Prepaid expense | ​ |  | 474 | ​ |  | 474 | ​
Tax deductible goodwill | ​ |  | 810 | ​ |  | 388 | ​
Mortgage servicing rights | ​ | ​ | 6,688 | ​ | ​ | 7,608 | ​
Other | ​ |  | 480 | ​ |  | 840 | ​
Total deferred tax liabilities | ​ |  | 55,936 | ​ |  | 38,650 | ​
Net deferred tax assets before valuation allowance | ​ |  | 35,203 | ​ |  | 40,703 | ​
Less, valuation allowance | ​ |  | (3,887) | ​ |  | (3,575) | ​
Net deferred tax assets | ​ | $ | 31,316 | ​ | $ | 37,128 | ​
​ The Company had federal net operating loss (“NOL”) carryforwards of $18.7 million and $24.3 million for the years ended December 31, 2019 and 2018, respectively, which expire in varying amounts through 2032. As a result of the Peoples, Savannah and Park Sterling ownership changes in 2012 and 2017, Section 382 of the Internal Revenue Code places an annual limitation of the amount of federal net operating loss carryforwards which the Company may utilize. Additionally, section 382 limits the Company’s ability to utilize certain tax deductions (realized built-in losses or “RBIL”) due to the existence of a Net Unrealized Built-in Loss (“NUBIL”) at the time of the change in control. The Company is allowed to carry forward any such RBIL under terms similar to those related to NOLs. Consequently, $4.6 million of the Company’s NOL carryforwards attributed to the Peoples acquisition are subject to annual limitations of $1.5 million, and $13.0 million of the Company’s NOL carryforwards attributed to the Savannah acquisition are subject to annual limitation of $2.0 million, and $1.1 million of the Company’s NOL carryforwards attributed to the Park Sterling acquisition are subject to annual limitations of $218 thousand. Additionally, the Company’s RBIL carryforwards attributed to the Park Sterling acquisition totaling $12.8 million are subject to annual limitations of $1.1 million. The Company expects all section 382 limited carryforwards to be realized within the applicable carryforward period. The Company had state net operating loss carryforwards of $108.6 million and $101.4 million for the years ended December 31, 2019 and 2018, respectively, which expire in varying amounts through 2037. There is a valuation allowance of $3.9 million that relates to the parent company’s state operating loss carryforwards for which realizability is uncertain. The change in the valuation allowance for the years ended December 31, 2019, 2018, and 2017 was immaterial. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets, net of the valuation allowance at December 31, 2019. As of December 31, 2019, the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2016.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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