Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Current and Deferred Income Tax Expense (Benefit)

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

(in thousands)	2018			2017		2016
Current
Federal	$	2,517		$	9,460	$	13,101
State		6,224			4,046		4,832
Total Current		8,741			13,506		17,933
Deferred
Federal		5,622			11,154		(1,607	)
State		(160	)		1,451		(229	)
Total Deferred		5,462			12,605		(1,836	)
Total Provision for Taxes	$	14,203		$	26,111	$	16,097

Total Provision for Income Taxes Reconciliation with Federal Statutory Rate

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

	2018						2017						2016
(in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Tax Provision at Federal Statutory Rate	$	12,543			21.0	%	$	19,068			35.0	%	$	16,037			35.0	%
Interest on Obligations of States and Political
Subdivisions exempt from Federal Taxation		(338	)		(0.6	%)		(617	)		(1.1	%)		(675	)		(1.5	%)
State and Local Income Taxes, Net of Federal Income
Tax Benefit		4,791			7.9	%		3,573			6.5	%		2,992			6.5	%
Bank Owned Life Insurance		(434	)		(0.7	%)		(696	)		(1.3	%)		(731	)		(1.6	%)
Low-Income Housing Tax Credit		(1,624	)		(2.7	%)		(1,546	)		(2.8	%)		(1,201	)		(2.6	%)
Out of Period Adjustment		(802	)		(1.3	%)		-			0.0	%		-			0.0	%
Bargain Purchase Gain		-			0.0	%		-			0.0	%		(641	)		(1.4	%)
Deferred Tax Asset Remeasurement		-			0.0	%		6,256			11.5	%		-			0.0	%
Other, Net		67			0.1	%		73			0.1	%		316			0.7	%
Total Provision for Taxes	$	14,203			23.8	%	$	26,111			47.9	%	$	16,097			35.1	%

Components of Net Deferred Tax Assets

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)	2018			2017
Deferred Tax Assets
Allowance for Credit Losses	$	15,877		$	14,962
Accrued Liabilities		7,444			7,421
Deferred Compensation		11,207			8,996
State Franchise Tax		1,307			850
Acquired Net Operating Loss		715			756
Fair Value Adjustment on Loans Acquired		300			242
Fair Value Adjustment on ORE Acquired		108			108
Unrealized Loss on Securities Available-for-Sale		1,800			373
Low-Income Housing Investment		412			470
Other		7			17
Total Deferred Tax Assets	$	39,177		$	34,195
Deferred Tax Liabilities
Premises and Equipment		(2,226	)		(1,361	)
Securities Accretion		(229	)		(164	)
Leasing Activities		(17,215	)		(12,389	)
Core Deposit Intangible Asset		(1,560	)		(247	)
Prepaid		(116	)		(964	)
Other		(1,000	)		(944	)
Total Deferred Tax Liabilities		(22,346	)		(16,069	)
Net Deferred Tax Assets	$	16,831		$	18,126