Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of income taxes are as follows:



	Years Ended December 31,
	2018			2017		2016
	(in thousands)
Current tax provision	$	30,459		$	10,565	$	22,308
Deferred tax expense (benefit)	(13,571		)	16,904		(987		)
Total provision for income taxes	$	16,888		$	27,469	$	21,321

Summary of Income Tax Provision Reconciled to Income Taxes that Computed at Statutory Federal Rate

The income tax provision reconciled to the income taxes that would have been computed at the statutory federal rate of 21% for 2018 and 35% for both 2017 and 2016 is as follows:



	Years Ended December 31,
	2018			2017			2016
	(in thousands)
Federal income tax, at statutory rates	$	16,861		$	28,017		$	21,994
Increase (deduction) in taxes resulting from:
Tax-exempt income	(1,096		)	(1,652		)	(1,671		)
Excise tax on real estate investment trust ("REIT") dividend	—			1,945			—
Adjustment to net deferred tax asset for Tax Cuts and Jobs Act	—			(1,343		)	—
State income tax, net of federal income tax effect	1,880			931			552
Adjustment to net deferred tax asset for change in NJ tax law	(943		)	—			—
Excess tax benefits from employee share-based payments	(318		)	(587		)	—
Other, net	504			158			446
Provision for income taxes	$	16,888		$	27,469		$	21,321

Summary of Net Deferred Tax Asset

The net deferred tax asset consisted of the following:



	December 31,
	2018		2017
Deferred tax assets:	(in thousands)
Allowance for loan and lease losses	$	11,651	$	10,662
Stock based compensation plans	865		769
Purchase accounting fair market value adjustments	1,192		1,441
Non-accrued interest	256		394
Deferred compensation	2,142		2,007
Depreciation and amortization	630		805
Other-than-temporary impairment loss on investment securities	59		77
Unrealized losses on securities available for sale	3,162		1,108
Other, net	585		675
Gross deferred tax assets	20,542		17,938
Deferred tax liabilities:
Core deposit intangible from acquired companies	516		664
Undistributed income from subsidiary not consolidated for tax return purposes (REIT)	149		12,015
Deferred loan costs	1,418		1,169
Prepaid expenses	459		524
Deferred gain on securities	166		116
Unfunded pension benefits	17		7
Loss on equity securities	36		—
Unrealized gains on hedging derivative	322		229
Other	270		357
Gross deferred tax liabilities	3,353		15,081
Net deferred tax assets	$	17,189	$	2,857