Income taxes (Tables)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions

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

	Three Months Ended June 30,
	2020		2019
Current	$	15,747	$	6,546
Deferred	(8,292)		(232)
Total	$	7,455	$	6,314
	Six Months Ended June 30,
	2020		2019
Current	$	23,915	$	16,740
Deferred	(16,380)		(4,451)
Total	$	7,535	$	12,289

Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes

Federal income tax expense differs from the statutory federal rate of 21% for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,
	2020				2019
Federal taxes calculated at statutory rate	$	6,369	21.0	%	$	5,251	21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	1,298		4.3	%	1,205		4.8	%
Benefit of equity based compensation	22		0.1	%	(1)		—	%
Municipal interest income, net of interest disallowance	(310)		(1.0)	%	(223)		(0.9)	%
Bank owned life insurance	(17)		(0.1)	%	(15)		—	%
Merger costs	32		0.1	%	—		—	%
Other	61		0.2	%	97		0.4	%
Income tax expense, as reported	$	7,455	24.6	%	$	6,314	25.3	%
	Six Months Ended June 30,
	2020				2019
Federal taxes calculated at statutory rate	$	6,542	21.0	%	$	10,619	21.0	%
Increase (decrease) resulting from:
State taxes, net of federal benefit	1,166		3.7	%	2,343		4.6	%
Benefit of equity based compensation	161		0.5	%	(393)		(0.8)	%
Municipal interest income, net of interest disallowance	(574)		(1.8)	%	(439)		(0.9)	%
Bank owned life insurance	(35)		(0.1)	%	(27)		—	%
Merger costs	163		0.5	%	—		—	%
Other	112		0.4	%	186		0.4	%
Income tax expense, as reported	$	7,535	24.2	%	$	12,289	24.3	%

Schedule of Net Deferred Tax liability

The components of the net deferred tax liability at June 30, 2020 and December 31, 2019, are as follows: 

	June 30,		December 31,
	2020		2019
Deferred tax assets:
Allowance for credit losses	$	31,170	$	8,113
Operating lease liability	8,924		9,373
Amortization of core deposit intangible	986		1,386
Deferred compensation	4,623		5,231
Unrealized loss on debt securities	54		54
Unrealized loss on equity securities	51		60
Unrealized loss on cash flow hedges	345		—
Other	3,041		2,388
Subtotal	49,194		26,605
Deferred tax liabilities:
FHLB stock dividends	(550)		(550)
Operating lease - right of use asset	(8,084)		(8,641)
Depreciation	(5,802)		(5,078)
Unrealized gain on cash flow hedges	—		(203)
Unrealized gain on debt securities	(7,758)		(3,051)
Mortgage servicing rights	(15,766)		(19,678)
Goodwill	(10,080)		(8,859)
Other	(1,234)		(1,035)
Subtotal	(49,274)		(47,095)
Net deferred tax liability	$	(80)	$	(20,490)