Note (7)—Income taxes:

Allocation of federal and state income taxes between current and deferred portions is as follows:

	For the Three Months Ended
	September 30,
	2018			2017
Current	$	13,367		$	4,328
Deferred		(6,665	)		274
Total	$	6,702		$	4,602

	For the Nine Months Ended
				September 30,
	2018			2017
Current	$	15,562		$	8,375
Deferred		4,416			8,226
Total	$	19,978		$	16,601

Federal income tax expense differs from the statutory federal rates of 21% for the three and nine months ended September 30, 2018 and 35% for the three and nine months ended September 30, 2017 due to the following:

	For the Three Months Ended
									September 30,
	2018					2017
Federal taxes calculated at statutory rate		5,897		21.0	%	$	4,547			35.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit		1,187		4.2	%		528			4.1	%
Benefit of equity based compensation		(115	)	-0.4	%		(134	)		-1.0	%
Municipal interest income, net of interest disallowance		(213	)	-0.8	%		(351	)		-2.7	%
Bank owned life insurance		(13	)	0.0	%		(22	)		-0.2	%
Other		(41	)	-0.1	%		34			0.2	%
Income tax expense, as reported	$	6,702		23.9	%	$	4,602			35.4	%

	For the Nine Months Ended
									September 30,
	2018					2017
Federal taxes calculated at statutory rate	$	17,467		21.0	%	$	16,086			35.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit		3,873		4.6	%		1,879			4.1	%
Benefit of equity based compensation		(866	)	-1.0	%		(309	)		-0.7	%
Municipal interest income, net of interest disallowance		(621	)	-0.8	%		(1,093	)		-2.4	%
Bank owned life insurance		(38	)	-0.1	%		(64	)		-0.1	%
Stock offering costs		141		0.2	%		—			0.0	%
Other		22		0.1	%		102			0.2	%
Income tax expense, as reported	$	19,978		24.0	%	$	16,601			36.1	%

The components of the net deferred tax liability at September 30, 2018 and December 31, 2017, are as follows:

	September 30,			December 31,
	2018			2017
Deferred tax assets:
Allowance for loan losses	$	7,193		$	6,264
Amortization of core deposit intangible		919			759
Deferred compensation		5,204			6,158
Unrealized loss on available-for-sale debt securities		5,911			988
Other		2,066			3,599
Subtotal		21,293			17,768
Deferred tax liabilities:
FHLB stock dividends		(550	)		(550	)
Depreciation		(4,516	)		(4,115	)
Cash flow hedges		(971	)		—
Mortgage servicing rights		(20,816	)		(19,830	)
Other		(6,763	)		(5,131	)
Subtotal		(33,616	)		(29,626	)
Net deferred tax liability	$	(12,323	)	$	(11,858	)

Tax periods for all fiscal years after 2014 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject.