v3.3.1.900

Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income tax expense for the years ended December 31 are as follows:
| Years ended December 31,
(in thousands) | 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal | $ | 22,916 |  |  | $ | 9,399 |  |  | $ | 24,029 |
State and local | 2,798 |  |  | 195 |  |  | 2,890 |
Total current | 25,714 |  |  | 9,594 |  |  | 26,919 |
Deferred: |  |  |  |  |
Federal | (5,266 | ) |  | 3,908 |  |  | (9,393 | )
State and local | (497 | ) |  | 369 |  |  | (550 | )
Total deferred | (5,763 | ) |  | 4,277 |  |  | (9,943 | )
Total income tax expense | $ | 19,951 |  |  | $ | 13,871 |  |  | $ | 16,976 |
A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate of 35% in 2015, 2014, and 2013 to income before income taxes and the amounts reflected in the consolidated statements of operations is as follows:
| Years ended December 31,
(in thousands) | 2015 |  | 2014 |  | 2013
Income tax expense at statutory rate | $ | 20,440 |  |  | $ | 14,365 |  |  | $ | 17,528 |
Increase (reduction) in income tax resulting from: |  |  |  |  |
Tax-exempt income, net | (931 | ) |  | (857 | ) |  | (1,128 | )
State and local income taxes, net | 1,414 |  |  | 741 |  |  | 1,314 |
Bank-owned life insurance, net | (462 | ) |  | (535 | ) |  | (484 | )
Non-deductible expenses | 259 |  |  | 290 |  |  | 222 |
Change in estimated rate for deferred taxes | — |  |  | — |  |  | 336 |
Tax benefits of LIHTC investments, net | (179 | ) |  | (158 | ) |  | (204 | )
Other, net | (590 | ) |  | 25 |  |  | (608 | )
Total income tax expense | $ | 19,951 |  |  | $ | 13,871 |  |  | $ | 16,976 |
The amount of tax credits and other tax benefits from low-income housing tax credit ("LIHTC") investments recognized during the year were $1.1 million during each of the years ended December 31, 2015, 2014, and 2013. The amount recognized as a component of income tax expense per the table above was $0.3 million for the year ended December 31, 2015, and $0.2 million for the years ended December 31, 2014 and 2013. As of December 31, 2015 and 2014, the carrying value of the investments related to low-income housing tax credits was $2.3 million and $3.2 million, respectively. No impairment losses have been recognized from forfeiture or ineligibility of tax credits or other circumstances during the life of any of the investments. As of December 31, 2015, the Company has future capital commitments of $0.3 million related to low-income housing tax credit investments. The capital commitments are expected to be called between the years 2016 - 2024. A net deferred income tax asset of $38.5 million and $31.4 million is included in Other assets in the consolidated balance sheets at December 31, 2015 and 2014, respectively. The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows:
| Years ended December 31,
(in thousands) | 2015 |  | 2014
Deferred tax assets: |  |  |
Allowance for loan losses | $ | 16,705 |  |  | $ | 17,463 |
Basis difference on PCI assets, net | 8,806 |  |  | 5,477 |
Basis difference on Other real estate | 328 |  |  | 516 |
Deferred compensation | 4,509 |  |  | 4,854 |
Goodwill and other intangible assets | 6,973 |  |  | 9,001 |
Accrued compensation | 2,222 |  |  | 2,364 |
Other, net | 907 |  |  | 979 |
Total deferred tax assets | $ | 40,450 |  |  | $ | 40,654 |
Deferred tax liabilities: |  |  |
FDIC loss share receivable, net | $ | — |  |  | $ | 5,542 |
Unrealized gains on securities available for sale | 183 |  |  | 1,091 |
State tax credits held for sale, net of economic hedge | 594 |  |  | 1,051 |
Core deposit intangibles | 1,178 |  |  | 1,595 |
Total deferred tax liabilities | 1,955 |  |  | 9,279 |
Net deferred tax asset | $ | 38,495 |  |  | $ | 31,375 |
A valuation allowance is provided on deferred tax assets when it is more likely than not that some portion of the assets will not be realized. The Company did not have any valuation allowances for federal or state income taxes as of December 31, 2015 or 2014. The Company and its subsidiaries file income tax returns in the federal jurisdiction and in nine states. The Company is no longer subject to federal, state or local income tax audits by tax authorities for years before 2012, with the exception of 2011 being an open year by one state taxing authority. The Company is not currently under audit by any taxing jurisdiction. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense and classifies such interest and penalties in the liability for unrecognized tax benefits. The amounts accrued for interest and penalties as of December 31, 2015, 2014, and 2013 were not significant. As of December 31, 2015, the gross amount of unrecognized tax benefits was $1.4 million and the total amount of net unrecognized tax benefits that would impact the effective tax rate, if recognized, was $0.9 million. As of December 31, 2014 and 2013, the total amount of the net unrecognized tax benefits that would impact the effective tax rate, if recognized, was $1.3 million and $0.8 million, respectively. The Company believes it is reasonably possible that the gross amount of unrecognized benefits will be reduced by approximately $0.5 million as a result of a lapse of statute of limitations in the next 12 months. The activity in the gross liability for unrecognized tax benefits was as follows:
(in thousands) | 2015 |  | 2014 |  | 2013
Balance at beginning of year | $ | 1,884 |  |  | $ | 1,257 |  |  | $ | 1,148 |
Additions based on tax positions related to the current year | 230 |  |  | 401 |  |  | 233 |
Additions for tax positions of prior years | 46 |  |  | 523 |  |  | 53 |
Reductions for tax positions of prior years | (437 | ) |  | — |  |  | — |
Settlements or lapse of statute of limitations | (364 | ) |  | (297 | ) |  | (177 | )
Balance at end of year | $ | 1,359 |  |  | $ | 1,884 |  |  | $ | 1,257 |

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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