Income taxes:

An allocation of federal and state income taxes between current and deferred portions is presented below:



	Three Months Ended June 30,
	2019			2018
Current	$	6,546		$	2,195
Deferred	(232		)	5,599
Total	$	6,314		$	7,794

	Six Months Ended June 30,
	2019			2018
Current	$	16,740		$	2,195
Deferred	(4,451		)	11,081
Total	$	12,289		$	13,276

Federal income tax expense differs from the statutory federal rate of 21% for the three and six months ended June 30, 2019 and 2018 due to the following:



	Three Months Ended June 30,
	2019					2018
Federal taxes calculated at statutory rate	$	5,251		21.0	%	$	6,270		21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	1,205			4.8	%	1,543			5.2	%
Benefit of equity based compensation	(1		)	0.0	%	(15		)	(0.1	)%
Municipal interest income, net of interest disallowance	(223		)	(0.9	)%	(207		)	(0.7	)%
Bank owned life insurance	(15		)	—	%	(13		)	(0.1	)%
Stock offering costs	—			0.0	%	141			0.5	%
Other	97			0.4	%	75			0.3	%
Income tax expense, as reported	$	6,314		25.3	%	$	7,794		26.1	%

	Six Months Ended June 30,
	2019					2018
Federal taxes calculated at statutory rate	$	10,619		21.0	%	$	11,570		21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	2,343			4.6	%	2,686			4.9	%
Benefit of equity based compensation	(393		)	(0.8	)%	(751		)	(1.5	)%
Municipal interest income, net of interest disallowance	(439		)	(0.9	)%	(408		)	(0.7	)%
Bank owned life insurance	(27		)	—	%	(25		)	—	%
Stock offering costs	—			—	%	141			0.3	%
Other	186			0.4	%	63			0.1	%
Income tax expense, as reported	$	12,289		24.3	%	$	13,276		24.1	%

The components of the net deferred tax liability at June 30, 2019 and December 31, 2018, are as follows:



	June 30,			December 31,
	2019			2018
Deferred tax assets:
Allowance for loan losses	$	7,853		$	7,539
Operating lease liability	10,090			—
Amortization of core deposit intangible	1,197			1,012
Deferred compensation	4,851			5,878
Unrealized loss on available-for-sale debt securities	100			3,299
Other	2,011			1,998
Subtotal	26,102			19,726
Deferred tax liabilities:
FHLB stock dividends	(550		)	(550		)
Operating lease - right of use asset	(9,806		)	—
Depreciation	(4,615		)	(4,812		)
Cash flow hedges	(2,252		)	(736		)
Mortgage servicing rights	(17,296		)	(23,146		)
Other	(8,474		)	(7,145		)
Subtotal	(42,993		)	(36,389		)
Net deferred tax liability	$	(16,891	)	$	(16,663	)

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.