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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Taxes | The provision for income taxes is comprised of the following components:
| Years Ended December 31
| 2019 |  | 2018 |  | 2017
| (Dollars in thousands)
Current expense |  |  |  |  |
Federal | $ | 27,980 |  |  | $ | 25,129 |  |  | $ | 28,852 |
State | 14,359 |  |  | 13,672 |  |  | 9,278 |
Total current expense | 42,339 |  |  | 38,801 |  |  | 38,130 |
Deferred expense (benefit) |  |  |  |  |
Federal | 9,080 |  |  | (3,080 | ) |  | 7,953 |
State | 1,514 |  |  | (1,417 | ) |  | 1,258 |
Total deferred expense (benefit) | 10,594 |  |  | (4,497 | ) |  | 9,211 |
Total expense | $ | 52,933 |  |  | $ | 34,304 |  |  | $ | 47,341 |
Schedule of Income Tax Rate Reconciliation | The difference between the statutory federal income tax rate and the effective income tax rate reported for the last three years is detailed below:
| Years Ended December 31
| 2019 |  | 2018 |  | 2017
| (Dollars in thousands)
Computed statutory federal income tax provision | $ | 45,803 |  | 21.00 | % |  | $ | 32,744 |  | 21.00 | % |  | $ | 47,091 |  | 35.00 | %
State taxes, net of federal tax benefit | 12,262 |  | 5.63 | % |  | 9,633 |  | 6.18 | % |  | 6,817 |  | 5.07 | %
Merger and other related costs (non-deductible) | 582 |  | 0.27 | % |  | 130 |  | 0.08 | % |  | 213 |  | 0.16 | %
Change in valuation allowance | 17 |  | 0.01 | % |  | 49 |  | 0.03 | % |  | 31 |  | 0.02 | %
Revaluation of net deferred tax assets | — |  | — | % |  | — |  | — | % |  | 1,895 |  | 1.41 | %
New Markets Tax Credits | (2,675 | ) | (1.23 | )% |  | (3,960 | ) | (2.54 | )% |  | (3,960 | ) | (2.94 | )%
Increase in cash surrender value of life insurance | (1,144 | ) | (0.52 | )% |  | (1,160 | ) | (0.74 | )% |  | (1,445 | ) | (1.07 | )%
Low Income Housing Project Investments | (1,696 | ) | (0.78 | )% |  | (1,030 | ) | (0.66 | )% |  | (1,253 | ) | (0.93 | )%
Stock-based compensation | (824 | ) | (0.38 | )% |  | (885 | ) | (0.57 | )% |  | (1,258 | ) | (0.94 | )%
Nontaxable interest, net | (757 | ) | (0.35 | )% |  | (566 | ) | (0.36 | )% |  | (987 | ) | (0.73 | )%
Other, net | 1,365 |  | 0.63 | % |  | (651 | ) | (0.42 | )% |  | 197 |  | 0.15 | %
Total expense | $ | 52,933 |  | 24.28 | % |  | $ | 34,304 |  | 22.00 | % |  | $ | 47,341 |  | 35.20 | %
Schedule of Net Deferred Tax Asset | The tax-effected components of the net deferred tax asset at December 31 of the years presented were as follows:
| 2019 |  | 2018
| (Dollars in thousands)
Deferred tax assets |  |  |
Accrued expenses not deducted for tax purposes | $ | 13,855 |  |  | $ | 11,922 |
Allowance for loan losses | 18,993 |  |  | 17,764 |
Employee and director equity compensation | 1,708 |  |  | 1,636 |
Loan basis difference fair value adjustment | 6,804 |  |  | 4,761 |
Net operating loss carry-forward | 2,546 |  |  | 170 |
Net unrealized loss on securities available for sale | — |  |  | 1,850 |
Operating lease liability | 16,393 |  |  | — |
Other | 1,311 |  |  | 1,561 |
Gross deferred tax assets | $ | 61,610 |  |  | $ | 39,664 |
Valuation allowance | (187 | ) |  | (170 | )
Total deferred tax assets net of valuation allowance | $ | 61,423 |  |  | $ | 39,494 |
Deferred tax liabilities |  |  |
Core deposit and other intangibles | $ | 5,802 |  |  | $ | 3,803 |
Deferred loan fees, net | 4,944 |  |  | 4,759 |
Derivatives fair value adjustment | 6,461 |  |  | 2,413 |
Fixed assets | 8,194 |  |  | 5,259 |
Goodwill | 10,645 |  |  | 10,388 |
Prepaid pension | 3,487 |  |  | 3,483 |
Right of use asset | 15,911 |  |  | — |
Other | 3,965 |  |  | 1,139 |
Gross deferred tax liabilities | $ | 59,409 |  |  | $ | 31,244 |
Total net deferred tax asset | $ | 2,014 |  |  | $ | 8,250 |
Reconciliation of Unrecognized Tax Benefits | The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:
| (Dollars in thousands)
Balance at December 31, 2017 | $ | 142 |
Increase for current year tax positions | 73 |
Balance at December 31, 2018 | 215 |
Reduction of tax positions for prior years | (127 | )
Increase for current year tax positions | 444 |
Balance at December 31, 2019 | $ | 532 |

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