Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of the Company's Income Tax Expense (Benefit)

The components of the Company’s income tax expense (benefit) are as follows:

	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Current taxes:
Federal	$	26,247	$	23,700	$	39,569
State		7,288		7,083		5,914
Deferred taxes		1,148		3,155		4,383
Total income taxes	$	34,683	$	33,938	$	49,866

Reconciliation of Tax Expense at the Federal Statutory Tax Rate

Income tax expense for 2017 was impacted by the write-down of net deferred tax asset of $4.3 million resulting from the federal tax rate change under the Tax Cuts and Jobs Act, enacted December 22, 2017. A reconciliation of tax expense at the federal statutory tax rate applied to income before taxes is presented in the following table. The federal statutory tax rate was 21% in 2019 and 2018 and 35% in 2017:

	Year Ended December 31,
	2019			2018			2017
	(Dollars in thousands)
Tax expense at the federal statutory tax rate	$	35,377		$	33,546		$	47,708
Increase (decrease) in tax expense from:
Tax-exempt income, net		(581	)		(510	)		(829	)
Modified endowment life contracts		(519	)		(558	)		(921	)
Share based compensation excess tax benefit		(765	)		(917	)		(2,354	)
State tax expense, net of federal tax benefit		5,757			5,595			3,840
Write-down of net deferred tax asset		—			—			4,331
Utilization of tax credits:
New markets tax credits, net of tax expense		(3,547	)		(1,422	)		(1,151	)
Low-income housing tax credits, net of amortization		(1,266	)		(1,273	)		(1,589	)
Other, net		227			(523	)		831
Total tax expense	$	34,683		$	33,938		$	49,866

Summary of Net Deferred Tax Asset Reported in Other Assets

The net deferred tax asset consisted of the following and is reported in other assets:

	December 31,
	2019			2018
	(Dollars in thousands)
Provision for loan losses	$	13,763		$	13,089
Unrealized net losses on securities		—			731
Write-downs of other real estate owned		181			462
Deferred compensation		2,268			2,209
Stock-based compensation		1,514			1,448
Investments in partnership interests		3,677			4,274
Other		903			963
Gross deferred tax assets		22,306			23,176
Unrealized net gains on securities		(1,187	)		—
Premium on securities of banks acquired		(153	)		(185	)
Intangibles		(6,757	)		(5,376	)
Basis difference related to tax credits		(2,015	)		(2,560	)
Depreciation		(10,349	)		(8,484	)
Prepaid expense deducted		(1,000	)		(1,178	)
Other		(180	)		(181	)
Gross deferred tax liabilities		(21,641	)		(17,964	)
Net deferred tax asset	$	665		$	5,212