Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is as follows:



	For the Year Ended December 31,
(In thousands)	2018		2017		2016
Current
Federal	$	9,078	$	667	$	653
State	—		2		30

Deferred
Federal	7,018		32,791		12,163
State	4,163		2,876		2,043
	$	20,259	$	36,336	$	14,889

Schedule of Effective Income Tax Rate Reconciliation

The difference between the total expected tax benefit (computed by applying the U.S. Federal tax rate of 21% to pretax income in 2018 and 35% in 2017 and 2016) and the reported income tax provision relating to income before income taxes is as follows:



	For the Year Ended December 31,
(In thousands)	2018			2017			2016
Tax rate applied to income before income taxes	$	18,381		$	27,720		$	15,431
Increase (decrease) resulting from the effects of:
Tax law change	—			8,552			—
Nondeductible acquisition costs	207			657			217
Tax exempt interest on loans, obligations of states and political subdivisions and bank owned life insurance	(667		)	(1,445		)	(1,215		)
State income taxes	(874		)	(1,007		)	(726		)
Tax credit investments	(33		)	(165		)	(55		)
Stock compensation	(918		)	(1,027		)	(731		)
Other	—			173			(105		)
Federal tax provision	16,096			33,458			12,816
State tax provision	4,163			2,878			2,073
Total income tax provision	$	20,259		$	36,336		$	14,889

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax assets (liabilities) are comprised of the following as of:



	December 31,
(In thousands)	2018			2017
Allowance for loan losses	$	8,592		$	7,187
Premises and equipment	1,670			1,390
Other real estate owned	207			207
Accrued stock compensation	2,547			1,569
Federal tax loss carryforward	4,699			4,755
State tax loss carryforward	2,912			5,578
Alternative minimum tax credit carryforward	—			2,209
Net unrealized securities losses	4,658			1,429
Deferred compensation	2,287			2,125
Accrued interest and fee income	7,674			2,411
Other	1,627			2,248
Gross deferred tax assets	36,873			31,108
Less: Valuation allowance	—			—
Deferred tax assets net of valuation allowance	36,873			31,108

Core deposit base intangible	(5,706		)	(3,964		)
Other	(2,213		)	(1,727		)
Gross deferred tax liabilities	(7,919		)	(5,691		)
Net deferred tax assets	$	28,954		$	25,417

Summary of Income Tax Examinations

The following are the major tax jurisdictions in which the Company operates and the earliest tax year, exclusive of the impact of the net operating loss carryforwards, subject to examination:



Jurisdiction	Tax Year
United States of America	2015
Florida	2015

Retained Earnings and Accumulated Other Comprehensive Income Before and After Adjustment

The table below reflects the balances before and after the adjustment between accumulated other comprehensive income and retained earnings:



(In thousands)	Unadjusted as of December 31, 2017			Adjustment			Adjusted as of December 31, 2017
Retained Earnings	$	29,208		$	706		$	29,914
Accumulated Other Comprehensive Income	(3,510		)	(706		)	(4,216		)