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Note 14 - Income Taxes
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
1
4
–
Income Taxes
 
Federal and state income tax expense consists of the following for the years ended
December
31:
 
 
(dollars in thousands)
 
2016
 
 
2015
 
 
2014
 
Current federal income tax
   $
53,290
    $
46,758
    $
32,384
 
Current state income tax
    
13,733
     
11,020
     
7,114
 
Total current
    
67,023
     
57,778
     
39,498
 
                         
Deferred federal income tax benefit
    
(5,523
 )    
(6,642
 )    
(7,494
 )
Deferred state income tax benefit
    
(105
 )    
(87
 )    
(46
 )
Total deferred
    
(5,628
 )    
(6,729
 )    
(7,540
 )
                         
Total income tax expense
  $
61,395
    $
51,049
    $
31,958
 
 
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)
 
2016
 
 
2015
 
 
2014
 
Deferred tax assets
                        
Allowance for credit losses
   $
23,738
    $
21,191
    $
18,544
 
Deferred loan fees and costs
    
10,728
     
9,724
     
10,337
 
Deferred rent
    
1,483
     
1,364
     
-
 
Stock-based compensation
    
3,037
     
2,068
     
1,714
 
Net operating loss
    
2,695
     
2,946
     
3,198
 
Unrealized loss on securities available-for-sale
    
1,303
     
-
     
-
 
Unrealized loss on interest rate swap derivatives
    
284
     
-
     
-
 
SERP
   
2,088
     
1,776
     
1,421
 
Premises and equipment
    
3,838
     
3,381
     
1,590
 
Other
    
477
     
383
     
71
 
Total deferred tax assets
    
49,671
     
42,833
     
36,875
 
                         
Deferred tax liabilities
                        
Unrealized gain on securities available for sale
    
-
     
(694
 )    
(1,765
 )
Excess servicing
    
(191
 )    
(157
 )    
(114
 )
Deferred rent
    
-
     
-
     
(162
 )
Intangible assets
    
(1,260
 )    
(1,671
 )    
(2,323
 )
Total deferred tax liabilities
    
(1,451
 )    
(2,522
 )    
(4,364
 )
Net deferred income tax amount
  $
48,220
    $
40,311
    $
32,511
 
 
A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended
December
31
follows:
 
 
 
 
2016
 
 
2015
 
 
2014
 
                         
Statutory federal income tax rate
    
35.00
%
    
35.00
%
    
35.00
%
Increase (decrease) due to
                        
State income taxes, net of federal income tax benefit
    
5.57
     
5.26
     
5.33
 
Tax exempt interest and dividend income
    
(0.98
 )    
(1.25
 )    
(2.28
 )
Stock-based compensation expense
   
0.01
     
0.02
     
0.04
 
Other
    
(1.01
 )    
(1.28
 )    
(1.02
 )
Effective tax rates
    
38.59
%
    
37.75
%
    
37.07
%
 
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,
2012.