Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

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



	Year ended December 31,
($ in thousands)	2019		2018		2017
Current:
Federal	$	15,470	$	9,621	$	15,845
State and local	2,027		2,432		1,377
Total current	17,497		12,053		17,222
Deferred:
Federal	4,262		2,812		20,989
State and local	1,538		495		116
Total deferred	5,800		3,307		21,105
Total income tax expense	$	23,297	$	15,360	$	38,327

Schedule of Income Tax Rate Reconciliation

A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate in 2019, 2018, and 2017 to income before income taxes and the amounts reflected in the consolidated statements of operations is as follows:



	Year ended December 31,
($ in thousands)	2019			2018			2017
Income tax expense at statutory rate	$	24,368		$	21,961		$	30,281
Increase (reduction) in income tax resulting from:
Tax-exempt income, net	(962		)	(506		)	(961		)
State and local income taxes, net	2,816			2,423			1,676
Bank-owned life insurance, net	(628		)	(452		)	(715		)
Non-deductible expenses	749			294			407
Change in estimated rate for deferred taxes	—			—			12,117
Tax benefits of LIHTC investments, net	(278		)	(50		)	(257		)
Excess tax benefits	(526		)	(1,631		)	(2,141		)
Federal tax credits	(913		)	(4,627		)	(1,701		)
Subsidiary dividend timing election	—			(2,728		)	—
Non-taxable donation to charitable foundation	(420		)	—			—
Other, net	(909		)	676			(379		)
Total income tax expense	$	23,297		$	15,360		$	38,327

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:



	Year ended December 31,
($ in thousands)	2019			2018
Deferred tax assets:
Allowance for loan losses	$	10,692		$	10,742
Acquired loans	9,722			3,677
Other real estate	657			81
Deferred compensation	2,462			2,480
Intangible assets	—			989
Accrued compensation	1,607			1,130
Unrealized losses on securities	—			3,019
Net operating losses and tax credits	7,066			—
Other deferred tax assets	791			1,786
Total deferred tax assets	32,997			23,904

Deferred tax liabilities:
Unrealized gains on securities	5,847			—
Intangible assets	7,432			2,112
Other deferred tax liabilities	2,407			1,068
Total deferred tax liabilities	15,686			3,180
Net deferred tax asset before valuation allowance	17,311			20,724
Less: valuation allowance	2,932			—
Net deferred tax asset	$	14,379		$	20,724
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)	2019			2018			2017
Balance at beginning of year	$	1,301		$	1,244		$	1,180
Additions based on tax positions related to the current year	401			367			331
Additions for tax positions of prior years	62			50			41
Settlements or lapse of statute of limitations	(267		)	(360		)	(308		)
Balance at end of year	$	1,497		$	1,301		$	1,244