9. Income Taxes

Current and deferred income tax expense (benefit) provided for the years ended December 31 consisted of the following:

(in thousands)	2019			2018			2017
Current
Federal	$	14,798		$	2,517		$	9,460
State		7,733			6,224			4,046
Total Current		22,531			8,741			13,506
Deferred
Federal		(3,500	)		5,622			11,154
State		246			(160	)		1,451
Total Deferred		(3,254	)		5,462			12,605
Total Provision for Taxes	$	19,277		$	14,203		$	26,111

The total provision for income taxes differs from the federal statutory rate as follows:

	2019						2018						2017
(in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Tax Provision at Federal Statutory Rate	$	15,816			21.0	%	$	12,543			21.0	%	$	19,068			35.0	%
Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation		(358	)		(0.5	%)		(338	)		(0.6	%)		(617	)		(1.1	%)
State and Local Income Taxes, Net of Federal Income Tax Benefit		6,304			8.4	%		4,791			7.9	%		3,573			6.5	%
Bank Owned Life Insurance		(460	)		(0.6	%)		(434	)		(0.7	%)		(696	)		(1.3	%)
Low-Income Housing Tax Credit		(2,078	)		(2.8	%)		(1,624	)		(2.7	%)		(1,546	)		(2.8	%)
Out of Period Adjustment		-			0.0	%		(802	)		(1.3	%)		-			0.0	%
Deferred Tax Asset Remeasurement		-			0.0	%		-			0.0	%		6,256			11.5	%
Other, Net		53			0.1	%		67			0.1	%		73			0.1	%
Total Provision for Taxes	$	19,277			25.6	%	$	14,203			23.8	%	$	26,111			47.9	%

The components of net deferred tax assets as of December 31 are as follows: The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheet.

(in thousands)	2019			2018
Deferred Tax Assets
Allowance for Credit Losses	$	15,925		$	15,877
Accrued Liabilities		8,452			7,444
Deferred Compensation		14,200			11,207
State Franchise Tax		1,624			1,307
Tax Credit Carry Forward		1,266			-
Lease Liability		1,487			-
Acquired Net Operating Loss		673			715
Fair Value Adjustment on Loans Acquired		286			300
Fair Value Adjustment on ORE Acquired		108			108
Unrealized Loss on Securities Available-for-Sale		-			1,800
Low-Income Housing Investment		286			412
Other		2			7
Total Deferred Tax Assets	$	44,309		$	39,177
Deferred Tax Liabilities
Premises and Equipment		(1,974	)		(2,226	)
Securities Accretion		(370	)		(229	)
Unrealized Gain on Securities Available-for-Sale		(935	)		-
Leasing Activities		(19,226	)		(17,215	)
Core Deposit Intangible Asset		(1,372	)		(1,560	)
ROU Lease Asset		(1,471	)		-
Prepaid		(66	)		(116	)
Other		(898	)		(1,000	)
Total Deferred Tax Liabilities		(26,312	)		(22,346	)
Net Deferred Tax Assets	$	17,997		$	16,831

The Tax Cuts and Jobs Act of 2017, which lowers the Company’s previous 35% federal corporate tax rate to 21%, was signed into law by President Trump on December 22, 2017. In accordance with the ASC Topic 740, Income Taxes, companies must recognize the effect of tax law changes in the period of enactment. As a result, the Company was required to re-measure its deferred tax assets (DTA) and deferred tax liabilities (DTL) at the new tax rate of 21%. This onetime re-measurement resulted in a $6.3 million increase in the Company’s income tax provision in 2017. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are expected to be deductible, Management believes it is more likely than not we will realize the benefit of the remaining deferred tax assets. The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheet.

The Company and its subsidiaries file income tax returns in the U.S. federal and California jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by the tax authorities for the years before 2015.