Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Income Tax Expense Benefit

The provision (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017 consists of the following (in thousands):



	For the Year Ended December 31,
	2019			2018			2017
Current
Federal	$	1,991		$	18,030		$	(12,754	)
State	740			108			169
Total current	2,731			18,138			(12,585		)
Deferred
Federal	18,846			(4,568		)	35,440
State	(2,793		)	—			—
Total deferred	16,053			(4,568		)	35,440
	$	18,784		$	13,570		$	22,855

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, 2019, 2018 and 2017 is as follows (in thousands):



	For the Year Ended December 31,
	2019			2018			2017
Income before provision for income taxes	$	107,358		$	85,502		$	65,325
Applicable statutory Federal income tax rate	21.0		%	21.0		%	35.0		%
Computed “expected” Federal income tax expense	$	22,545		$	17,955		$	22,864
(Decrease) increase in Federal income tax expense resulting from
Tax exempt interest	(665		)	(615		)	(839		)
ESOP fair market value adjustment	77			125			223
ESOP dividends	(151		)	(136		)	(230		)
Earnings on BOLI	(1,138		)	(1,072		)	(1,155		)
Merger related expenses	297			322			478
State income taxes net of Federal benefit	583			85			110
Stock compensation	(386		)	(758		)	(1,823		)
Revaluation of state deferred tax asset	(2,205		)	—			—
Impact of Tax Cuts and Jobs Act (“Tax Reform”)	—			(1,854		)	3,643
Reclassification of certain tax effect from accumulated other comprehensive income	(221		)	(586		)	—
Other items, net	48			104			(416		)
	$	18,784		$	13,570		$	22,855

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, 2019 and 2018 are presented in the following table (in thousands):



	December 31,
	2019			2018
Deferred tax assets:
Allowance for loan losses	$	4,107		$	3,501
Reserve for repurchased loans	112			55
Reserve for uncollected interest	212			119
Incentive compensation	1,397			1,302
Deferred compensation	591			529
Other reserves	2,737			334
Stock plans	1,270			950
ESOP	178			142
Purchase accounting adjustments	8,475			16,142
Net operating loss carryforward related to acquisition	39,519			44,436
Other real estate owned	—			90
Unrealized loss on securities	826			1,225
Unrealized loss on properties available-for-sale	1,438			1,266
Federal and state alternative minimum tax	4,746			1,410
Total gross deferred tax assets	65,608			71,501
Deferred tax liabilities:
Investments, discount accretion	(380		)	(232		)
Deferred loan and commitment costs, net	(2,379		)	(1,478		)
Premises and equipment, differences in depreciation	(7,340		)	(4,350		)
Undistributed REIT income	(4,735		)	(1,730		)
Other	(707		)	(334		)
Total gross deferred tax liabilities	(15,541		)	(8,124		)
Net deferred tax assets	$	50,067		$	63,377