Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31 are as follows:



	Years ended December 31,
(in thousands)	2018		2017		2016
Current:
Federal	$	9,621	$	15,845	$	17,005
State and local	2,432		1,377		1,734
Total current	12,053		17,222		18,739
Deferred:
Federal	2,812		20,989		5,959
State and local	495		116		1,304
Total deferred	3,307		21,105		7,263
Total income tax expense	$	15,360	$	38,327	$	26,002

Schedule of Income Tax Rate Reconciliation

A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate in 2018, 2017, and 2016 to income before income taxes and the amounts reflected in the consolidated statements of operations is as follows:



	Years ended December 31,
(in thousands)	2018			2017			2016
Income tax expense at statutory rate	$	21,961		$	30,281		$	26,194
Increase (reduction) in income tax resulting from:
Tax-exempt income, net	(506		)	(961		)	(945		)
State and local income taxes, net	2,423			1,676			1,673
Bank-owned life insurance, net	(452		)	(715		)	(544		)
Non-deductible expenses	294			407			263
Change in estimated rate for deferred taxes	—			12,117			302
Tax benefits of LIHTC investments, net	(50		)	(257		)	(181		)
Excess tax benefits	(1,631		)	(2,141		)	—
Federal tax credits	(4,627		)	(1,701		)	(62		)
Subsidiary dividend timing election	(2,728		)	—			—
Other, net	676			(379		)	(698		)
Total income tax expense	$	15,360		$	38,327		$	26,002

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

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)	2018			2017
Deferred tax assets:
Allowance for loan losses	$	10,742		$	10,516
Basis difference on PCI assets, net	3,677			5,748
Basis difference on Other real estate	81			694
Deferred compensation	2,480			2,719
Goodwill and other intangible assets	989			2,151
Accrued compensation	1,130			646
Unrealized losses on securities available for sale	3,019			1,490
Other deferred tax assets	1,786			2,150
Total deferred tax assets	23,904			26,114

Deferred tax liabilities:
State tax credits held for sale, net of economic hedge	—			26
Core deposit intangibles	2,112			2,731
Other deferred tax liabilities	1,068			855
Total deferred tax liabilities	3,180			3,612
Net deferred tax asset	$	20,724		$	22,502
Deferred tax rate	24.7		%	24.7		%

Schedule of Unrecognized Tax Benefits

The activity in the gross liability for unrecognized tax benefits was as follows:



(in thousands)	2018			2017			2016
Balance at beginning of year	$	1,244		$	1,180		$	1,359
Additions based on tax positions related to the current year	367			331			239
Additions for tax positions of prior years	50			41			39
Settlements or lapse of statute of limitations	(360		)	(308		)	(457		)
Balance at end of year	$	1,301		$	1,244		$	1,180