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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes (In Thousands) Significant components of the provision for income taxes are as follows for the periods presented:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Current |  |  |  |  |
Federal | $ | 28,380 |  |  | $ | 31,679 |  |  | $ | 17,004 |
State | 1,354 |  |  | 2,131 |  |  | 995 |
| 29,734 |  |  | 33,810 |  |  | 17,999 |
Deferred |  |  |  |  |
Federal | 22,314 |  |  | 10,480 |  |  | 12,625 |
State | 1,147 |  |  | 557 |  |  | 1,126 |
Revaluation of net deferred tax assets as a result of the Tax Cuts and Jobs Act | 14,486 |  |  | — |  |  | — |
| 37,947 |  |  | 11,037 |  |  | 13,751 |
| $ | 67,681 |  |  | $ | 44,847 |  |  | $ | 31,750 |
The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Tax at U.S. statutory rate | $ | 55,955 |  |  | $ | 47,522 |  |  | $ | 34,918 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
Tax-exempt interest income | (3,595 | ) |  | (3,467 | ) |  | (3,377 | )
BOLI income | (1,524 | ) |  | (1,622 | ) |  | (1,264 | )
Investment tax credits | (1,591 | ) |  | (1,390 | ) |  | (1,390 | )
Amortization of investment in low-income housing tax credits | 1,873 |  |  | 1,742 |  |  | 1,734 |
State income tax expense, net of federal benefit | 1,626 |  |  | 1,747 |  |  | 1,378 |
Revaluation of net deferred tax assets as a result of the Tax Cuts and Jobs Act | 14,486 |  |  | — |  |  | — |
Other items, net | 451 |  |  | 315 |  |  | (249 | )
| $ | 67,681 |  |  | $ | 44,847 |  |  | $ | 31,750 |
Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:
| December 31,
| 2017 |  | 2016
Deferred tax assets |  |  |
Allowance for loan losses | $ | 13,966 |  |  | $ | 19,934 |
Loans | 15,062 |  |  | 23,240 |
Deferred compensation | 7,093 |  |  | 11,254 |
Net unrealized losses on securities | 3,659 |  |  | 10,096 |
Impairment of assets | 1,748 |  |  | 2,512 |
Net operating loss carryforwards | 2,419 |  |  | 2,867 |
Other | 4,722 |  |  | 7,149 |
Gross deferred tax assets | 48,669 |  |  | 77,052 |
Valuation allowance on state net operating loss carryforwards | — |  |  | — |
Total deferred tax assets | 48,669 |  |  | 77,052 |
Deferred tax liabilities |  |  |
Investment in partnerships | 757 |  |  | 1,556 |
Depreciation | 3,163 |  |  | 2,517 |
Mortgage servicing rights | 10,139 |  |  | 3,360 |
Subordinated debt | 2,394 |  |  | 4,111 |
Other | 1,859 |  |  | 2,876 |
Total deferred tax liabilities | 18,312 |  |  | 14,420 |
Net deferred tax assets | $ | 30,357 |  |  | $ | 62,632 |
The Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, among other things, permanently lowered the statutory federal corporate tax rate from 35% to 21%, effective for tax years including or beginning January 1, 2018. Under the guidance of ASC 740, “Income Taxes” (“ASC 740”), the Company revalued its net deferred tax assets on the date of enactment based on the reduction in the overall future tax benefit expected to be realized at the lower tax rate implemented by the new legislation. After reviewing the Company's inventory of deferred tax assets and liabilities on the date of enactment and giving consideration to the future impact of the lower corporate tax rates and other provisions of the new legislation, the Company's revaluation of its net deferred tax assets was $14,486, which was included in “Income taxes” in the Consolidated Statements of Income. Although in the normal course of business the Company is required to make estimates and assumptions for certain tax items which cannot be fully determined at period end, the Company did not identify items for which the income tax effects of the Tax Act have not been completed as of December 31, 2017 and, therefore, considers its accounting for the tax effects of the Tax Act on its deferred tax assets and liabilities to be complete as of December 31, 2017. The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2014 through 2016. The Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2013 through 2016. The Company acquired federal and state net operating losses as part of the Metropolitan and Heritage acquisitions. The federal and state net operating losses acquired in the Metropolitan acquisition were $11,788 and $12,881, respectively, none of which remained to be utilized as of December 31, 2017. The federal net operating loss acquired in the Heritage acquisition totaled $18,321, of which $5,920 remained to be utilized as of December 31, 2017, while state net operating losses totaled $17,168, of which $7,319 remained to be utilized as of December 31, 2017. Both the federal and state net operating losses will expire at various dates beginning in 2031; however, the Company expects to utilize the federal and state net operating losses prior to expiration. Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the year end December 31, 2017. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below. These amounts have been adjusted for the change in the tax rate from 35% to 21%.
| 2017 |  | 2016 |  | 2015
Balance at January 1 | $ | 1,510 |  |  | $ | 1,485 |  |  | $ | 2,653 |
Additions based on positions related to current period | 467 |  |  | 25 |  |  | 367 |
Additions based on positions related to prior period | — |  |  | — |  |  | — |
Reductions based on positions related to prior period | — |  |  | — |  |  | (201 | )
Settlements | — |  |  | — |  |  | (1,334 | )
Reductions due to lapse of statute of limitations | (371 | ) |  | — |  |  | — |
Balance at December 31 | $ | 1,606 |  |  | $ | 1,510 |  |  | $ | 1,485 |
If ultimately recognized, the Company does not anticipate any material increase in the effective tax rate for 2017 relative to any tax positions taken prior to January 1, 2017. The Company had accrued $169, $169 and $125 for interest and penalties related to unrecognized tax benefits as of December 31, 2017, 2016 and 2015, respectively.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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