Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31, 2017, 2016, and 2015, were as follows:



	For the Years Ended December 31,
(in thousands)	2017		2016		2015
Current:
Federal	$	12,487	$	13,493	$	14,868
State	539		640		896
Total current taxes	13,026		14,133		15,764
Deferred:
Federal	1,467		6,279		5,344
State	766		1,731		1,186
Total deferred taxes	2,233		8,010		6,530
Total income tax expense	$	15,259	$	22,143	$	22,294

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense computed at the statutory federal income tax rate to actual income tax expense is presented in the following table for the years ended December 31, 2017, 2016, and 2015:



	For the Years Ended December 31,
	2017					2016					2015
($ in thousands)	Amount			%		Amount			%		Amount			%
Taxes at statutory rate	$	19,269		35.0	%	$	21,318		35.0	%	$	21,500		35.0	%
Increase (reduction) in income taxes resulting from:
State income tax, net of credits and Federal income tax	771			1.4		1,541			2.5		1,353			2.2
Employee compensation and benefit plans, net	(211		)	(0.4	)	(654		)	(1.0	)	(630		)	(1.0	)
Tax exempt interest income	(167		)	(0.3	)	(230		)	(0.4	)	(244		)	(0.4	)
Benefit due to enactment of federal tax reform	(4,903		)	(8.9	)	—			—		—			—
Other, net	500			0.9		168			0.3		315			0.5
Income tax expense	$	15,259		27.7	%	$	22,143		36.4	%	$	22,294		36.3	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2017, and 2016, are presented in the table below:



	December 31,
	2017					2016
(in thousands)	Assets			Liabilities		Assets			Liabilities
Allowance for loan losses	$	7,575		$	—	$	11,571		$	—
Mortgage servicing rights	—			21,566		—			26,857
Accelerated depreciation	—			1,637		—			2,721
Deferred loan fees, net	553			—		2,433			—
Deferred compensation	2,334			—		2,541			—
ORE	317			—		524			—
State tax carryforward	2,312			—		1,724			—
Unrealized gains on investment securities available-for-sale	—			159		—			424
Stock benefits/compensation	1,032			—		1,580			—
FDIC acquired assets	306			—		331			—
Loan mark-to-market adjustment	479			—		1,088			—
Net operating losses	1,497			—		2,708			—
Deductible prepaids	—			333		—			214
Other	660			379		1,179			504
Total	$	17,065		$	24,074	$	25,679		$	30,720

Net deferred tax liability	$	(7,009	)			$	(5,041	)