Income taxes:

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



	For the Year Ended December 31,
	2019			2018		2017
Current	$	27,641		$	19,259	$	14,629
Deferred	(1,916		)	6,359		6,458
Total	$	25,725		$	25,618	$	21,087

Federal income tax expense differs from the statutory federal rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 due to the following:



	For the Year Ended December 31,
	2019					2018					2017
Federal taxes calculated at statutory rate	$	23,003		21.0	%	$	22,230		21.0	%	$	25,720		35.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	4,792			4.4	%	4,666			4.4	%	3,053			4.2	%
Revaluation of net deferred tax liability as a result of the Tax Cuts and Jobs Act	—			—	%	—			—	%	(5,894		)	(8.0	)%
Benefit of equity based compensation	(1,353		)	(1.2	)%	(870		)	(0.8	)%	(310		)	(0.4	)%
Municipal interest income, net of interest disallowance	(908		)	(0.8	)%	(837		)	(0.8	)%	(1,402		)	(1.9	)%
Bank owned life insurance	(51		)	(0.1	)%	(51		)	—	%	(85		)	(0.2	)%
Merger and stock offering costs	66			0.1	%	141			0.1	%	—			—	%
Other	176			0.1	%	339			0.3	%	5			—	%
Income tax expense, as reported	$	25,725		23.5	%	$	25,618		24.2	%	$	21,087		28.7	%

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



	December 31,			December 31,
	2019			2018
Deferred tax assets:
Allowance for loan losses	$	8,113		$	7,539
Operating lease liability	9,373			—
Amortization of core deposit intangible	1,386			1,012
Deferred compensation	5,231			5,878
Unrealized loss on debt securities	54			3,278
Unrealized loss on equity securities	60			21
Other	2,388			1,998
Subtotal	26,605			19,726
Deferred tax liabilities:
FHLB stock dividends	(550		)	(550		)
Operating lease - right of use asset	(8,641		)	—
Depreciation	(5,078		)	(4,812		)
Unrealized gain on cash flow hedges	(203		)	(736		)
Unrealized gain on debt securities	(3,051		)	—
Mortgage servicing rights	(19,678		)	(23,146		)
Goodwill	(8,859		)	(6,583		)
Other	(1,035		)	(562		)
Subtotal	(47,095		)	(36,389		)
Net deferred tax liability	$	(20,490	)	$	(16,663	)

On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law, among other things permanently reducing the corporate tax rate from 35 percent to 21 percent, effective for tax years beginning January 1, 2018. Under the guidance of ASC 740, “Income Taxes” (“ASC 740”), the Company revalued its net deferred tax assets on the date of enactment based on the reduction in the overall future tax benefit expected to be realized at the lower tax rate implemented by the new legislation. After reviewing the Company’s inventory of deferred tax assets and liabilities on the date of enactment and giving consideration to the future impact of the lower corporate tax rates and other provisions of the new legislation, the Company’s revaluation of its net deferred tax liabilities resulted in a $5,894 reduction, which was included in “income tax expense” in the Consolidated Statements of Income.

The Company is no longer subject to examination by taxing authorities for tax years before 2016 for federal taxes and before 2015 for various state jurisdictions.