Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following:



	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Current tax expense	$	12,504	$	9,866	$	12,171
Deferred tax expense	984		1,372		6,185
Income tax expense	$	13,488	$	11,238	$	18,356

Reconciliation of effective income tax rate

A reconciliation of the Company's effective income tax rate with the Federal statutory income tax rate for the years ended December 31, 2019, 2018 and 2017 of 21%, 21% and 35% is as follows:



	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Income tax expense at Federal statutory rate	$	17,020		$	13,710		$	21,051
Tax-exempt instruments	(1,745		)	(1,879		)	(3,212		)
Non-deductible acquisition costs	—			336			210
Federal tax credits and other benefits ⁽¹⁾	(1,961		)	(515		)	(1,510		)
Effects of BOLI	(368		)	(330		)	(531		)
Revaluation of net deferred tax assets	—			—			2,568
Other, net	542			(84		)	(220		)
Income tax expense	$	13,488		$	11,238		$	18,356


⁽¹⁾	Federal tax credits are provided for under the NMTC and LIHTC programs as described in Note (1) Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements.

Components of deferred income tax asset (liability)

The following table presents major components of the deferred income tax asset (liability) resulting from differences between financial reporting and tax basis:



	December 31, 2019			December 31, 2018
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	7,389		$	6,941
Accrued compensation	3,058			3,379
Stock compensation	904			769
Net unrealized losses charged to other comprehensive income on securities	—			2,070
Market discount on purchased loans	621			1,054
Foregone interest on nonaccrual loans	914			811
Net operating loss carryforward acquired	228			336
Other Real Estate Owned	—			754
ROU lease liability	5,227			—
Other deferred tax assets	134			364
Total deferred tax assets	18,475			16,478
Deferred tax liabilities:
Deferred loan fees, net	(3,328		)	(3,333		)
Premises and equipment	(2,510		)	(1,819		)
FHLB stock	(569		)	(569		)
Goodwill and other intangible assets	(2,807		)	(3,526		)
Federal tax credits	(1,781		)	(1,457		)
Junior subordinated debentures	(1,113		)	(1,176		)
Other deferred tax liabilities	(239		)	(540		)
ROU lease asset	(4,956		)	—
Net unrealized gains recognized in other comprehensive income on securities	(2,753		)	—
Total deferred tax liabilities	(20,056		)	(12,420		)
Deferred tax (liability) asset, net	$	(1,581	)	$	4,058