Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of Income Tax Expense Benefit

The provision (benefit) for income taxes for the years ended December 31, 2018, 2017 and 2016 consists of the following (in thousands):



	For the Year Ended December 31,
	2018			2017			2016
Current
Federal	$	18,030		$	(12,754	)	$	6,259
State	108			169			96
Total current	18,138			(12,585		)	6,355
Deferred
Federal	(4,568		)	35,440			5,798
State	—			—			—
Total deferred	(4,568		)	35,440			5,798
	$	13,570		$	22,855		$	12,153

Schedule of Income Tax Reconciliation

A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands):



	For the Year Ended December 31,
	2018			2017			2016
Income before provision for income taxes	$	85,502		$	65,325		$	35,199
Applicable statutory Federal income tax rate	21.0		%	35.0		%	35.0		%
Computed “expected” Federal income tax expense	$	17,955		$	22,864		$	12,320
(Decrease) increase in Federal income tax expense resulting from
Tax exempt interest	(615		)	(839		)	(390		)
ESOP fair market value adjustment	125			223			131
ESOP dividends	(136		)	(230		)	(223		)
Earnings on BOLI	(1,072		)	(1,155		)	(781		)
Merger related expenses	322			478			1,005
State income taxes net of Federal benefit	85			110			62
Stock compensation	(758		)	(1,823		)	—
Impact of Tax Cuts and Jobs Act (“Tax Reform”)	(1,854		)	3,643			—
Reclassification of certain tax effect from accumulated other comprehensive income	(586		)	—			—
Other items, net	104			(416		)	29
	$	13,570		$	22,855		$	12,153

Schedule of Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented in the following table (in thousands):



	December 31,
	2018			2017
Deferred tax assets:
Allowance for loan losses	$	3,501		$	3,311
Reserve for repurchased loans	55			97
Reserve for uncollected interest	119			49
Incentive compensation	1,302			—
Deferred compensation	529			519
Other reserves	334			115
Stock plans	950			864
ESOP	142			126
Purchase accounting adjustments	59,110			3,436
Net operating loss carryforward related to acquisition	2,736			3,741
Other real estate owned	90			170
Unrealized loss on securities	1,225			1,898
Federal and state alternative minimum tax	1,410			2,451
Total gross deferred tax assets	71,503			16,777
Deferred tax liabilities:
Incentive compensation	—			(127		)
Excess servicing on sale of mortgage loans	(18		)	(28		)
Investments, discount accretion	(232		)	(244		)
Deferred loan and commitment costs, net	(1,478		)	(1,119		)
Premises and equipment, differences in depreciation	(4,350		)	(373		)
Undistributed REIT income	(1,730		)	(12,322		)
Other	(318		)	(642		)
Total gross deferred tax liabilities	(8,126		)	(14,855		)
Net deferred tax assets	$	63,377		$	1,922