Income taxes (Tables)
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9 Months Ended |
Sep. 30, 2019 |
Income Tax Disclosure [Abstract] |
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Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions |
An allocation of federal and state income taxes between current and deferred portions is presented below: | | | | | | | | | | | | Three Months Ended September 30, | | | | 2019 |
| | 2018 |
| Current | | $ | 9,167 |
| | $ | 13,367 |
| Deferred | | (1,449 | ) | | (6,665 | ) | Total | | $ | 7,718 |
| | $ | 6,702 |
| | | | Nine Months Ended September 30, | | | | 2019 |
| | 2018 |
| Current | | $ | 25,907 |
| | $ | 15,562 |
| Deferred | | (5,900 | ) | | 4,416 |
| Total | | $ | 20,007 |
| | $ | 19,978 |
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Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes |
Federal income tax expense differs from the statutory federal rate of 21% for the three and nine months ended September 30, 2019 and 2018 due to the following: | | | | | | | | | | | | | | | | Three Months Ended September 30, | | | | 2019 | | | 2018 | | Federal taxes calculated at statutory rate | | $ | 6,653 |
| 21.0 | % | | $ | 5,897 |
| 21.0 | % | Increase (decrease) resulting from: | | | | | | | State taxes, net of federal benefit | | 1,512 |
| 4.7 | % | | 1,187 |
| 4.2 | % | Benefit of equity based compensation | | (275 | ) | (0.9 | )% | | (115 | ) | (0.4 | )% | Municipal interest income, net of interest disallowance | | (211 | ) | (0.7 | )% | | (213 | ) | (0.8 | )% | Bank owned life insurance | | (11 | ) | 0.1 | % | | (13 | ) | — | % | Other | | 50 |
| 0.2 | % | | (41 | ) | (0.1 | )% | Income tax expense, as reported | | $ | 7,718 |
| 24.4 | % | | $ | 6,702 |
| 23.9 | % | | | | | | | | | | Nine Months Ended September 30, | | | | 2019 | | | 2018 | | Federal taxes calculated at statutory rate | | $ | 17,272 |
| 21.0 | % | | $ | 17,467 |
| 21.0 | % | Increase (decrease) resulting from: | | | | | | | State taxes, net of federal benefit | | 3,855 |
| 4.7 | % | | 3,873 |
| 4.6 | % | Benefit of equity based compensation | | (668 | ) | (0.8 | )% | | (866 | ) | (1.0 | )% | Municipal interest income, net of interest disallowance | | (650 | ) | (0.8 | )% | | (621 | ) | (0.8 | )% | Bank owned life insurance | | (38 | ) | (0.1 | )% | | (38 | ) | (0.1 | )% | Stock offering costs | | — |
| — | % | | 141 |
| 0.2 | % | Other | | 236 |
| 0.3 | % | | 22 |
| 0.1 | % | Income tax expense, as reported | | $ | 20,007 |
| 24.3 | % | | $ | 19,978 |
| 24.0 | % |
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Schedule of Net Deferred Tax liability |
The components of the net deferred tax liability at September 30, 2019 and December 31, 2018, are as follows: | | | | | | | | | | | | September 30, |
| | December 31, |
| | | 2019 |
| | 2018 |
| Deferred tax assets: | | |
| | |
| Allowance for loan losses | | $ | 8,198 |
| | $ | 7,539 |
| Operating lease liability | | 9,839 |
| | — |
| Amortization of core deposit intangible | | 1,273 |
| | 1,012 |
| Deferred compensation | | 5,891 |
| | 5,878 |
| Unrealized loss on available-for-sale debt securities | | 115 |
| | 3,299 |
| Other | | 2,451 |
| | 1,998 |
| Subtotal | | 27,767 |
| | 19,726 |
| Deferred tax liabilities: | | |
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| FHLB stock dividends | | (550 | ) | | (550 | ) | Operating lease - right of use asset | | (9,514 | ) | | — |
| Depreciation | | (4,466 | ) | | (4,812 | ) | Cash flow hedges | | (3,418 | ) | | (736 | ) | Mortgage servicing rights | | (17,342 | ) | | (23,146 | ) | Goodwill | | (8,244 | ) | | (6,583 | ) | Other | | (901 | ) | | (562 | ) | Subtotal | | (44,435 | ) | | (36,389 | ) | Net deferred tax liability | | $ | (16,668 | ) | | $ | (16,663 | ) |
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