Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income tax expense consists of the following:



Year ended December 31,	2019		2018		2017
Current:
Federal	$	40.5	$	23.1	$	24.3
State	8.2		7.2		5.0
Total current	48.7		30.3		29.3
Deferred:
Federal	3.7		12.3		18.4
State	1.7		3.5		2.5
Total deferred	5.4		15.8		20.9
Total income tax expense	$	54.1	$	46.1	$	50.2

Schedule of Effective Income Tax Rate Reconciliation

Total income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate of 21% for 2019 and 2018 and 35% for 2017, respectively, to income before income taxes due to the following:



Year ended December 31,	2019			2018			2017
Tax expense at the statutory tax rate	$	49.4		$	43.3		$	54.9
Increase (decrease) in tax resulting from:
Tax-exempt income	(2.8		)	(2.8		)	(4.5		)
State income tax, net of federal income tax benefit	9.9			8.5			4.9
Benefit of stock-based compensation plans	(1.2		)	(1.1		)	(2.6		)
Federal tax credits	(2.0		)	(2.6		)	(2.5		)
Benefit due to enactment of federal tax reform	—			—			(2.2		)
Other, net	0.8			0.8			2.2
Tax expense at effective tax rate	$	54.1		$	46.1		$	50.2

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax asset (liability) relate to the following:



December 31,	2019			2018
Deferred tax assets:
Loans, principally due to allowance for loan losses	$	18.1		$	18.4
Loan discount	7.2			8.3
Investment securities, unrealized losses	—			8.9
Deferred compensation	18.1			17.0
Non-performing loan interest	1.0			1.2
Other real estate owned write-downs and carrying costs	0.1			0.3
Tax credit carryforwards ⁽¹⁾	0.2			0.1
Net operating loss carryforwards ⁽²⁾	2.6			3.9
Lease liabilities	9.9			—
Other	0.9			0.1
Deferred tax assets	58.1			58.2
Deferred tax liabilities:
Fixed assets, principally differences in bases and depreciation	(8.8		)	(6.9		)
Deferred loan costs	(2.8		)	(2.6		)
Investment securities, unrealized gains	(3.9		)	—
Investment in joint venture partnership, principally due to differences in depreciation of partnership assets	(0.7		)	(0.8		)
Right of use assets	(9.7		)	—
Prepaid amounts	(0.5		)	(0.6		)
Government agency stock dividends	(1.2		)	(1.5		)
Goodwill and core deposit intangibles	(49.2		)	(44.2		)
Mortgage servicing rights	(7.2		)	(6.4		)
Other	(0.8		)	(3.8		)
Deferred tax liabilities	(84.8		)	(66.8		)
Net deferred tax assets (liabilities)	$	(26.7	)	$	(8.6	)

⁽¹⁾Based on filed tax returns and amounts expected to be reported in current year tax returns (December 31, 2019), we had remaining federal tax credit carryforwards of $0.1 million from acquired companies. The remaining federal tax credits were primarily generated from AMT tax credit carryforwards, and their use is subject to annual limitations.

⁽²⁾ As of December 31, 2019, we had remaining federal net operating loss carryforwards of $3.8 million from acquired companies, which is available to offset federal taxable income and state net operating loss carryforwards in amounts which vary by state. The federal net operating losses will expire beginning in 2029 and ending in 2037 and the state net operating losses will expire beginning in 2020 and ending in 2034. The use of these carryforwards is subject to annual limitations.