Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The components of income taxes are as follows:



	Years Ended December 31,
(in thousands)	2019		2018			2017

Current tax provision	$	20,418	$	30,459		$	10,565
Deferred tax expense (benefit)	2,854		(13,571		)	16,904
Total provision for income taxes	$	23,272	$	16,888		$	27,469

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 2019 and 2018 and 35% for 2017 is as follows:



	Years Ended December 31,
(in thousands)	2019			2018			2017

Federal income tax, at statutory rates	$	19,728		$	16,861		$	28,017
Increase (deduction) in taxes resulting from:
Tax-exempt income	(952		)	(1,096		)	(1,652		)
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	4,322			1,880			931
Adjustment to net deferred tax asset for change in NJ tax law	—			(943		)	—
Excess tax benefits from employee share-based payments	(189		)	(318		)	(587		)
Other, net	363			504			158
Provision for income taxes	$	23,272		$	16,888		$	27,469

Summary of Net Deferred Tax Asset

The net deferred tax asset consisted of the following:



	December 31,
(in thousands)	2019		2018
Deferred tax assets:
Allowance for loan losses	$	11,937	$	11,651
Stock based compensation plans	958		865
Purchase accounting fair market value adjustments	3,632		1,192
Non-accrued interest	381		256
Deferred compensation	2,444		2,142
Depreciation and amortization	—		630
Other-than-temporary impairment loss on investment securities	41		59
Federal net operating loss carryforward	875		—
Unrealized loss on pension plans	2		—
Unrealized losses on securities available for sale	—		3,162
Other, net	594		585
Gross deferred tax assets	20,864		20,542
Deferred tax liabilities:
Core deposit intangible from acquired companies	1,235		516
Undistributed income from subsidiary not consolidated for tax return purposes (REIT)	678		149
Deferred loan costs	1,461		1,418
Depreciation and amortization	750		—
Prepaid expenses	443		459
Deferred gain on securities	162		166
Unfunded pension benefits	—		17
Loss on equity securities	65		36
Unrealized gain on investment securities	884		—
Unrealized gains on hedging derivative	80		322
Other	301		270
Gross deferred tax liabilities	6,059		3,353
Net deferred tax assets	$	14,805	$	17,189