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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of income tax expense
Income tax expense for the years ended December 31, 2018, 2017 and 2016 consisted of the following:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
Current tax expense
 
$
9,658

 
$
12,171

 
$
6,885

Deferred tax expense
 
1,372

 
6,185

 
6,918

Income tax expense
 
$
11,030

 
$
18,356

 
$
13,803

Reconciliation of effective income tax rate
A reconciliation of the Company's effective income tax rate with the Federal statutory income tax rate of 35% for the years 2017 and 2016 and 21% for the year 2018 is as follows:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
Income tax expense at Federal statutory rate
 
$
13,502

 
$
21,051

 
$
18,452

Tax-exempt instruments
 
(1,879
)
 
(3,212
)
 
(3,198
)
Non-deductible acquisition costs
 
336

 
210

 

Federal tax credits and other benefits (1)
 
(515
)
 
(1,510
)
 
(931
)
Effects of BOLI
 
(330
)
 
(531
)
 
(511
)
Revaluation of net deferred tax assets
 


 
2,568

 

Other, net
 
(84
)
 
(220
)
 
(9
)
Income tax expense
 
$
11,030

 
$
18,356

 
$
13,803

(1) Federal tax credits are provided for under the NMTC program and LIHTC programs as described in Note (14) Commitments and Contingencies. Tax benefits related to these credits were recognized for financial reporting purposes in the same period that the credits were recognized in the Company's income tax returns. Other benefits include the proportional amortization of the LIHTC of $3.1 million, $2.2 million and $523,000, for the years ended December 31, 2018, 2017 and 2016, respectively.

Components of deferred income tax asset (liability)
The following table presents major components of the deferred income tax asset (liability) resulting from differences between financial reporting and tax basis:
 
 
December 31, 2018
 
December 31, 2017
 
 
(In thousands)
Deferred tax assets:
 
 
 
 
Allowance for loan losses
 
$
6,941

 
$
6,699

Accrued compensation
 
3,379

 
1,779

Stock compensation
 
769

 
660

Net unrealized losses charged to other comprehensive income on securities
 
2,070

 
347

Market discount on purchased loans
 
1,054

 
539

Foregone interest on nonaccrual loans
 
811

 
471

Net operating loss carryforward acquired from NCB
 
336

 
270

Other Real Estate Owned
 
754

 

Other deferred tax assets
 
364

 
763

Total deferred tax assets
 
16,478


11,528

Deferred tax liabilities:
 
 
 
 
Deferred loan fees, net
 
(3,333
)
 
(2,518
)
Premises and equipment
 
(1,819
)
 
(1,091
)
FHLB stock
 
(569
)
 
(557
)
Goodwill and other intangible assets
 
(3,526
)
 
(304
)
Federal tax credits
 
(1,457
)
 
(1,107
)
Junior subordinated debentures
 
(1,176
)
 
(1,215
)
Other deferred tax liabilities
 
(540
)
 
(847
)
Total deferred tax liabilities
 
(12,420
)

(7,639
)
Deferred tax asset, net
 
$
4,058


$
3,889