Income Tax (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017:



	2019			2018			2017
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21% for 2019 and 2018 and 35% for 2017	$	40,695		$	39,509		$	46,758
Tax-exempt Interest Income	(10,124		)	(8,347		)	(11,127		)
Stock Compensation	(459		)	(622		)	(893		)
Earnings on Life Insurance	(953		)	(868		)	(2,302		)
Tax Credits	(263		)	(615		)	(811		)
Tax Cuts and Jobs Act - Rate Reform Impact	—			—			5,120
Other	429			(58		)	779
Income Tax Expense	$	29,325		$	28,999		$	37,524

Effective Tax Rate	15.1		%	15.4		%	28.1		%

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following components for the years ended December 31, 2019, 2018, 2017:



	2019		2018			2017
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	23,938	$	23,633		$	22,001
State	422		1,842			—
Deferred:
Federal	4,726		6,723			9,969
Tax Cuts and Jobs Act - Rate Reform Impact	—		—			5,120
State	239		(3,199		)	434
Income Tax Expense	$	29,325	$	28,999		$	37,524

Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets (liabilities) resulting from temporary differences were as follows at December 31, 2019 and 2018:



	2019		2018
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	19,717	$	19,785
Differences in Accounting for Loan Fees	442		749
Differences in Accounting for Loans and Securities	—		710
Deferred Compensation	4,436		2,101
Federal & State Income Tax Loss Carryforward and Credits	6,205		6,954
Net Unrealized Loss on Securities Available for Sale	—		1,686
Other	3,499		2,028
Total Assets	34,299		34,013
Liabilities:
Differences in Depreciation Methods	5,240		6,496
Differences in Accounting for Loans and Securities	1,192		—
Difference in Accounting for Pensions and Other Employee Benefits	1,556		566
State Income Tax	778		791
Net Unrealized Gain on Securities Available for Sale	10,333		—
Gain on FDIC Modified Whole Bank Transaction	413		487
Other	6,506		4,271
Total Liabilities	26,018		12,611
Net Deferred Tax Asset Before Valuation Allowance	8,281		21,402
Valuation allowance:
Beginning Balance	—		(6,966		)
Decrease/(Increase) During the Year	—		6,966
Ending Balance	—		—
Net Deferred Tax Asset	$	8,281	$	21,402