Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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

	2019			2018			2017
Current income tax expense (benefit):
Federal	$	1,339		$	585		$	(15,424	)
State		2,625			(51	)		1,162
Total current tax expense (benefit)		3,964			534			(14,262	)
Deferred income tax expense (benefit):
Federal		3,031			(7,868	)		8,389
State		(1,564	)		1,932			3,628
Total deferred tax expense (benefit)		1,467			(5,936	)		12,017
Income tax expense (benefit), as reported	$	5,431		$	(5,402	)	$	(2,245	)

Schedule of Effective Income Tax Rate Reconciliation

Reported income tax expense (benefit) differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% in 2019 and 2018 and 35% in 2017 to income before income taxes as follows:

	2019			2018			2017
Income tax expense computed at the statutory rate	$	4,928		$	9,670		$	34,389

State income tax, net of federal benefit		838			1,485			3,114
Stock-based compensation expense		443			268			(380	)
Change in U.S. tax rate		—			244			(18,921	)
Decrease in taxes due to investment tax credit		(1,561	)		(17,846	)		(20,509	)
Other		783			777			62
Total income tax expense (benefit)	$	5,431		$	(5,402	)	$	(2,245	)

Schedule of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities are as follows:

	2019		2018
Deferred tax assets:
Tax credit carryforwards	$	37,619	$	39,560
Allowance for loan and lease losses		11,579		7,784
Net operating loss carryforwards		83		5,046
Mark to market on loans held for sale		10,501		1,780
Stock-based compensation expense		4,918		3,004
Goodwill and intangibles		720		720
Accrued expenses		1,372		430
Net unrealized losses on securities available for sale		—		529
Operating lease liabilities		629		—
Other		977		1,573
Total deferred tax assets		68,398		60,426

Deferred tax liabilities:
Investment in joint venture		15,538		16,596
Unguaranteed loan discount		13,076		8,535
Premises and equipment		45,291		40,032
Deferred loan fees and costs, net		1,417		987
Net unrealized gains on securities available for sale		3,702		—
Operating lease right-of-use assets		584		—
Other		538		326
Total deferred tax liabilities		80,146		66,476
Net deferred tax liability	$	11,748	$	6,050