Income Tax (Tables)

12 Months Ended

Dec. 31, 2013

The components of income tax expense (benefit) are as follows:



	Years Ended December 31,
	2013		2012			2011
	(in thousands)
Current tax expense	$	21,581	$	21,218		$	21,688
Deferred tax expense (benefit)	5,413		(3,656		)	(3,783		)
Total	$	26,994	$	17,562		$	17,905

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Allowance for loan and lease losses	$	27,196		$	30,027
Supplemental executive retirement plan	8,565			6,967
Stock option and restricted stock	917			682
OREO costs	7,929			3,801
Nonaccrual interest	2,354			193
Purchase accounting	15,551			—
Unrealized loss on investment securities	7,176			—
Other	1,741			557
Total deferred tax assets	71,429			42,227
Deferred tax liabilities:
Asset purchase tax basis difference	(7,754		)	(19,408		)
FHLB stock dividends	(4,159		)	(1,963		)
Purchase accounting	—			(745		)
Deferred loan fees	(4,512		)	(1,755		)
Unrealized gain on investment securities	—			(11,150		)
Depreciation	(7,076		)	(1,870		)
Total deferred tax liabilities	(23,501		)	(36,891		)
Net deferred tax asset	$	47,928		$	5,336

A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows:



	Years Ended December 31,
	2013					2012					2011
	Amount			Percent		Amount			Percent		Amount			Percent
	(dollars in thousands)
Income tax based on statutory rate	$	30,454		35	%	$	22,297		35	%	$	23,080		35	%
Reduction resulting from:
Tax credits	(1,038		)	(1	)%	(504		)	(1	)%	(608		)	(1	)%
Tax exempt instruments	(4,113		)	(5	)%	(3,906		)	(6	)%	(3,824		)	(6	)%
Life insurance proceeds	(1,250		)	(1	)%	(1,001		)	(2	)%	(766		)	(1	)%
Bargain purchase	—			—	%	—			—	%	(1,036		)	(2	)%
Acquisition costs	1,362			2	%	—			—	%	—			—	%
Other, net	1,579			1	%	676			1	%	1,059			2	%
Income tax provision	$	26,994		31	%	$	17,562		27	%	$	17,905		27	%