Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2018 |
Income Tax Disclosure [Abstract] |
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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 |
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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 |
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(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.
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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 |
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| 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 |
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| $ | 3,889 |
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