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Note 9 - Income Taxes | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 9: INCOME TAXES The provision for income taxes for the years ended December 31 is comprised of the following components:
(In thousands) |  | 2017 |  | 2016 |  | 2015
Income taxes currently payable |  | $ | 38,732 |  |  | $ | 36,792 |  |  | $ | 19,301 |
Deferred income taxes |  |  | 23,251 |  |  |  | 9,832 |  |  |  | 13,599 |
Provision for income taxes |  | $ | 61,983 |  |  | $ | 46,624 |  |  | $ | 32,900 |
The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows as of December 31, 2017 and 2016:
(In thousands) |  | 2017 |  | 2016
Deferred tax assets: |  |  |  |  |  |  |  |
Loans acquired |  | $ | 19,885 |  |  | $ | 7,986 |
Allowance for loan losses |  |  | 10,773 |  |  |  | 14,754 |
Valuation of foreclosed assets |  |  | 2,852 |  |  |  | 3,958 |
Tax NOLs from acquisition |  |  | 7,821 |  |  |  | 13,077 |
Deferred compensation payable |  |  | 2,433 |  |  |  | 2,785 |
Accrued equity and other compensation |  |  | 5,302 |  |  |  | 8,107 |
Acquired securities |  |  | 578 |  |  |  | 1,098 |
Unrealized loss on available-for-sale securities |  |  | 6,107 |  |  |  | 9,559 |
Other |  |  | 8,813 |  |  |  | 7,101 |
Gross deferred tax assets |  |  | 64,564 |  |  |  | 68,425 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Goodwill and other intangible amortization |  |  | (32,572 | ) |  |  | (29,601 | )
Accumulated depreciation |  |  | (8,945 | ) |  |  | (5,370 | )
Other |  |  | (4,413 | ) |  |  | (5,877 | )
Gross deferred tax liabilities |  |  | (45,930 | ) |  |  | (40,848 | )
Net deferred tax asset, included in other assets |  | $ | 18,634 |  |  | $ | 27,577 |
A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below for the years ended December 31:
(In thousands) |  | 2017 |  | 2016 |  | 2015
Computed at the statutory rate (35%) |  | $ | 54,223 |  |  | $ | 50,203 |  |  | $ | 37,543 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax benefit |  |  | 1,582 |  |  |  | 2,121 |  |  |  | 2,097 |
Discrete items related to ASU 2016-09 |  |  | (1,480 | ) |  |  | -- |  |  |  | -- |
Tax exempt interest income |  |  | (5,135 | ) |  |  | (5,112 | ) |  |  | (5,432 | )
Impact of DTA remeasurement |  |  | 11,471 |  |  |  | -- |  |  |  | -- |
Section 382 adjustment |  |  | -- |  |  |  | -- |  |  |  | (2,293 | )
Other differences, net |  |  | 1,322 |  |  |  | (588 | ) |  |  | 985 |
Actual tax provision |  | $ | 61,983 |  |  | $ | 46,624 |  |  | $ | 32,900 |
The Company follows ASC Topic 740, Income Taxes , which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than- not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than- not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than- not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC Topic 740 also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. The Company has no history of expiring net operating loss carryforwards and is projecting significant pre-tax and financial taxable income in 2018 and in future years. The Company expects to fully realize its deferred tax assets in the future. On December 22, 2017, the President signed tax reform legislation (the “2017 Act”) which includes a broad range of tax reform proposals affecting businesses, including corporate tax rates, business deductions, and international tax provisions. The 2017 Act reduces the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. Under US GAAP, deferred tax assets and liabilities are required to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled and the effect of a change in tax law is recorded discretely as a component of the income tax provision related to continuing operations in the period of enactment. As a result, we were required to remeasure our deferred taxes as of December 22, 2017 based upon the new 21% tax rate and the change was recorded in the 2017 income tax provision. The result of the tax reform resulted in a one -time non-cash adjustment to income of $11.5 million. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118” ), which provides guidance on accounting for the tax effects of the 2017 Act. SAB 118 provides a measurement period that should not extend beyond one year from the 2017 Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. As such, the company’s financial results reflect the income tax effects for the 2017 Act for which the accounting under ASC 740 is complete and provisional amounts for those specific income tax effects of the 2017 Act for which the accounting under ASC 740 is incomplete but a reasonable estimate could be determined. The company did not identify items for which the income tax effects of the 2017 Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. The tax expense recorded in 2017 is a reasonable estimate based on published guidance available at this time and is considered provisional. The ultimate impact of the 2017 Act may differ from these estimates due to changes in interpretations and assumptions made by the Company, as well as additional regulatory guidance. Any adjustments will be reflected in the Company’s financial statements in future periods. In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2018 - 02, Income Statement-Reporting Comprehensive Income (Topic 220 ) (“ASU 2018 - 02” ), that allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the 2017 Act. Current US GAAP requires the remeasurement of deferred tax assets and liabilities as a result of a change in tax laws or rates to be presented in net income from continuing operations. Consequently, the original deferred tax amount recorded through AOCI at the old rate will remain in AOCI despite the fact that its related deferred tax asset/liability will be reduced through continuing operations to reflect the new rate, resulting in “stranded” tax effects in AOCI. ASU 2018 - 02 requires a reclassification from AOCI to retained earnings for those stranded tax effects resulting from the newly enacted federal corporate income tax rate. As permitted, the Company elected to early adopt the provisions of ASU 2018 - 02 during the fourth quarter 2017, which resulted in a reclassification from AOCI to retained earnings in the amount of $3.0 million. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including adding amounts for current tax year positions, expiration of open income tax returns due to the statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the addition or elimination of uncertain tax positions. Section 382 of the Internal Revenue Code imposes an annual limit on the ability of a corporation that undergoes an “ownership change” to use its U.S. net operating losses to reduce its tax liability. The Company closed a stock acquisition in 2015 that invoked the Section 382 annual limitation. Approximately $35.6 million of federal net operating losses subject to the IRC Sec 382 annual limitation are expected to be utilized by the company. The net operating loss carryforwards expire between 2028 and 2035. The Company files income tax returns in the U.S. federal jurisdiction. The Company’s U.S. federal income tax returns are open and subject to examinations from the 2014 tax year and forward. The Company’s various state income tax returns are generally open from the 2014 and later tax return years based on individual state statute of limitations.

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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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