XML 37 R22.htm IDEA: XBRL DOCUMENT

Note 14 - Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 14 – Income Taxes

Federal and state income tax expense consists of the following for the years ended December 31:

(dollars in thousands)		2015				2014				2013
Current federal income tax		$	46,758			$	32,384			$	26,136
Current state income tax			11,020				7,114				6,147
Total current			57,778				39,498				32,283

Deferred federal income tax benefit			(6,642	)			(7,494	)			(3,909	)
Deferred state income tax benefit			(87	)			(46	)			(56	)
Total deferred			(6,729	)			(7,540	)			(3,965	)

Total income tax expense		$	51,049			$	31,958			$	28,318

Temporary timing differences between the amounts reported in the financial statements and the tax bases of assets and liabilities result in deferred taxes. Gross deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary difference, is presented below for the years ended December 31:

(dollars in thousands)		2015				2014				2013
Deferred tax assets
Allowance for credit losses		$	21,191			$	18,544			$	16,440
Deferred loan fees and costs			9,724				10,337				5,039
Deferred rent			1,364				-				-
Stock-based compensation			2,068				1,714				1,370
Net operating loss			2,946				3,198				3,449
Unrealized loss on securities available for sale			-				-				2,213
SERP			1,776				1,421				-
Premises and equipment			3,381				1,590				1,283
Other			383				71				4
Total deferred tax assets			42,833				36,875				29,798

Deferred tax liabilities
Unrealized gain on securities available for sale			(694	)			(1,765	)			-
Excess servicing			(157	)			(114	)			(95	)
Deferred rent			-				(162	)			(264	)
Intangible assets			(1,671	)			(2,323	)			(490	)
Total deferred tax liabilities			(2,522	)			(4,364	)			(849	)
Net deferred income tax amount		$	40,311			$	32,511			$	28,949

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31 follows:

		2015				2014				2013

Statutory federal income tax rate			35.00	%			35.00	%			35.00	%
Increase (decrease) due to
State income taxes, net of federal income tax benefit			5.26				5.33				5.26
Tax exempt interest and dividend income			(1.25	)			(2.28	)			(2.17	)
Stock-based compensation expense			0.02				0.04				0.06
Other			(1.28	)			(1.02	)			(0.56	)
Effective tax rates			37.75	%			37.07	%			37.59	%

The net operating loss carry forward acquired in conjunction with the Fidelity acquisition is subject to annual limits under Section 382 of the Internal Revenue Code of $718 thousand and expires in 2027. The Company remains subject to examination for the years ending after December 31, 2011.