10.	Income Taxes

Current and deferred income tax expense (benefit) provided for the years ended December 31 consisted of the following:

(in thousands)	2017		2016			2015
Current
Federal	$	9,460	$	13,101		$	11,979
State		4,046		4,832			4,446
Total Current		13,056		17,933			16,425
Deferred
Federal		11,154		(1,607	)		383
State		1,451		(229	)		116
Total Deferred		12,605		(1,836	)		499
Total Provision for Taxes	$	26,111	$	16,097		$	16,924

The total provision for income taxes differs from the federal statutory rate as follows:

	2017						2016						2015
(in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Tax Provision at Federal Statutory Rate	$	19,068			35.0	%	$	16,037			35.0	%	$	15,510			35.0	%
Interest on Obligations of States and Political
Subdivisions exempt from Federal Taxation		(617	)		(1.1	%)		(675	)		(1.5	%)		(711	)		(1.6	%)
State and Local Income Taxes, Net of Federal Income Tax Benefit		3,573			6.5	%		2,992			6.5	%		2,966			6.7	%
Bank Owned Life Insurance		(696	)		(1.3	%)		(731	)		(1.6	%)		(712	)		(1.6	%)
Low-Income Housing Tax Credit		(1,546	)		(2.8	%)		(1,201	)		(2.6	%)		(291	)		(0.7	%)
Bargain Purchase Gain		-			0.0	%		(641	)		(1.4	%)		-			0.0	%
Deferred Tax Asset Remeasurement		6,256			11.5	%		-			0.0	%		-			0.0	%
Other, Net		73			0.1	%		316			0.7	%		162			0.4	%
Total Provision for Taxes	$	26,111			47.9	%	$	16,097			35.1	%	$	16,924			38.2	%

The components of net deferred tax assets as of December 31 are as follows: The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company's Consolidated Balance Sheet.

(in thousands)	2017			2016
Deferred Tax Assets
Allowance for Credit Losses	$	14,962		$	20,260
Accrued Liabilities		7,421			9,807
Deferred Compensation		8,996			14,166
State Franchise Tax		850			1,680
Acquired Net Operating Loss		756			1,135
Fair Value Adjustment on Loans Acquired		242			429
Fair Value Adjustment on ORE Acquired		108			299
Unrealized Loss on Securities Available-for-Sale		373			58
Low-Income Housing Investment		470			366
Other		17			233
Total Deferred Tax Assets	$	34,195		$	48,433
Deferred Tax Liabilities
Premises and Equipment		(1,361	)		(1,707	)
Securities Accretion		(164	)		(341	)
Leasing Activities		(12,389	)		(14,868	)
Core Deposit Intangible Asset		(247	)		(398	)
Prepaid		(964	)		(314	)
Other		(944	)		(494	)
Total Deferred Tax Liabilities		(16,069	)		(18,122	)
Net Deferred Tax Assets	$	18,126		$	30,311

The Tax Cuts and Jobs Act, which lowers the Company’s previous 35% federal corporate tax rate to 21%, was signed into law by President Trump on December 22, 2017. In accordance with the ASC Topic 740, Income Taxes, companies must recognize the effect of tax law changes in the period of enactment. As a result, the Company is required to re-measure its deferred tax assets (DTA) and deferred tax liabilities (DTL) at the new tax rate of 21%. This onetime re-measurement resulted in a $6.3 million increase in the Company’s income tax provision. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are expected to be deductible, Management believes it is more likely than not we will realize the benefit of the remaining deferred tax assets. The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheet.

The Company and its subsidiaries file income tax returns in the U.S. federal and California jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by the tax authorities for the years before 2013.