Income Tax (Tables)

12 Months Ended

Dec. 31, 2018

Reconciliation of Federal Statutory to Actual Tax Expense

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2018, 2017, 2016:



	2018			2017			2016
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21% for 2018 and 35% for 2017 and 2016	$	39,509		$	46,758		$	38,031
Tax-exempt Interest Income	(8,347		)	(11,127		)	(8,749		)
Stock Compensation	(622		)	(893		)	(61		)
Earnings on Life Insurance	(868		)	(2,302		)	(1,486		)
Tax Credits	(615		)	(811		)	(564		)
Tax Cuts and Jobs Act - Rate Reform Impact				5,120
Other	(58		)	779			438
Income Tax Expense	$	28,999		$	37,524		$	27,609

Effective Tax Rate	15.4		%	28.1		%	25.4		%

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following components for the years ended December 31, 2018, 2017, 2016:



	2018			2017		2016
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	23,633			$	22,001	$	18,998
State	1,842
Deferred:
Federal	6,723			9,969		8,233
Tax Cuts and Jobs Act - Rate Reform Impact				5,120
State	(3,199		)	434		378
Income Tax Expense	$	28,999		$	37,524	$	27,609

Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets (liabilities) resulting from temporary differences were as follows at December 31, 2018 and 2017:



	2018			2017
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	19,785		$	19,526
Differences in Accounting for Loan Fees	749			1,458
Differences in Accounting for Loans and Securities	710			3,681
Deferred Compensation	2,101			4,448
Federal & State Income Tax Loss Carryforward and Credits	6,954			10,829
Net Unrealized Loss on Securities Available for Sale	1,686
Other	2,028			365
Total Assets	34,013			40,307
Liabilities:
Differences in Depreciation Methods	6,496			5,245
Difference in Accounting for Pensions and Other Employee Benefits	566			823
State Income Tax	791			58
Net Unrealized Gain on Securities Available for Sale				2,898
Gain on FDIC Modified Whole Bank Transaction	487			602
Other	4,271			3,897
Total Liabilities	12,611			13,523
Net Deferred Tax Asset Before Valuation Allowance	21,402			26,784
Valuation allowance:
Beginning Balance	(6,966		)	(9,815		)
Decrease/(Increase) During the Year	6,966			2,849
Ending Balance	—			(6,966		)
Net Deferred Tax Asset	$	21,402		$	19,818