Note 12: Income Taxes

The provision for income taxes includes these components for the years ended December 31, 2019, 2018 and 2017:


	Year Ended
	December 31,
	2019				2018		2017
		(In thousands)
Income tax expense
Current tax payable
Federal	$	21,396		$	13,312		$	21,413
State		4,387			5,528			3,479
Deferred tax payable
Federal		(375)			1,583			(2,627)
State		(603)			730			212
Income tax expense	$	24,805		$	21,153		$	22,477
Effective tax rate		24.3	%		29.1	%		29.1	%

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense for the years ended December 31, 2019, 2018 and 2017, is shown below:


	Year Ended
	December 31,
	2019			2018	2017
	(In thousands)
Computed at the statutory rate (21% for 2019 and 2018, and 35% for 2017)	$	21,448	$	17,646	$	27,006
Increase resulting from
State income taxes		2,989		4,944		2,399
Effect of Tax Cuts and Jobs Act		—		—		(6,928)
Tax Credits net of related amortization		(190)		(1,533)		—
Other		558		96		—
Actual tax expense	$	24,805	$	21,153	$	22,477

The tax effects of temporary differences related to deferred taxes shown on the balance sheet were:


	December 31,
	2019		2018
	(In thousands)
Deferred tax assets
Allowance for loan losses	$	4,069	$	3,366
Unrealized loss on available for sale securities		—		148
Fair value adjustments on acquisitions		228		—
Other		1,309		854
Total assets		5,606		4,368
Deferred tax liabilities
Depreciation		(1,374)		(466)
Intangible assets		(466)		(618)
Mortgage servicing rights		(17,035)		(17,477)
Limited partnership investments		(1,791)		(2,212)
Unrealized loss on available for sale securities		(121)		—
Fair value adjustments on acquisitions		—		(3)
Total liabilities		(20,787)		(20,776)
Net deferred tax liability	$	(15,181)	$	(16,408)

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act, which significantly changes the existing U.S. tax laws, including a reduction in the corporate tax rate from 35% to 21%. As a result of enactment of the legislation, the Company recorded in the fourth quarter of 2017, an additional one-time income tax benefit of $6.9 million, primarily related to the re-measurement of certain deferred tax assets and liabilities and included an expense of $243,000 related to the adjustment of the deferred tax asset for net unrealized losses on available for sale securities.