The following were the components of provision for income taxes for the years ended December 31, 2019, 2018, and 2017

	2019			2018			2017
Current tax expense:
Federal	$	18,976		$	—		$	1,010
State and local		2,199			1,078			1,485
Total current tax expense		21,175			1,078			2,495
Deferred tax expense (benefit):
Federal		(3,676	)		11,469			13,554
State and local		2,794			2,460			686
Remeasurement of net deferred tax assets		—			(760	)		2,364
Total deferred tax expense (benefit)		(882	)		13,169			16,604
Provision for income taxes	$	20,293		$	14,247		$	19,099

The following is a reconciliation between the statutory U.S. federal income tax rate of 21% for 2019 and 2018, and 35% for 2017, and the effective tax rate:

	2019				2018				2017
Calculated tax benefit at statutory rate		21.0		%		21.0		%		35.0		%
Increase (decrease) in income taxes resulting from:
State taxes, net of federal income tax		5.6				7.0				6.5
Tax exempt income		(0.5	)			(0.5	)			(0.7	)
Share-based compensation		(0.1	)			(0.9	)			—
Non-deductible expenses		0.3				0.5				0.2
Remeasurement of net deferred tax assets		—				(1.4	)			5.8
Total income tax expense (benefit)		26.3		%		25.7		%		46.8		%

As part of a budget package passed by the Legislature of the State of Illinois, the corporate income tax rate increased from 5.25% to 7.00% effective July 1, 2017. As a result of the increase in the corporate income tax rate, we recorded a state income tax benefit of $4.8 million during 2017, primarily due to increased value of our deferred tax asset related to our Illinois net loss deduction.

The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017, and ASC 740 required us to reflect the changes associated with the Tax Act’s provisions in the fourth quarter of 2017. The Tax Act is complex and has extensive implications for the Company’s federal and state taxes. Among other things, the Tax Act reduced the corporate federal income tax rate from 35% to 21%, effective January 1, 2018. Also on December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance on accounting for the Tax Act’s impact. SAB 118 provides a measurement period, not to extend beyond one year from the date of enactment during which a company, acting in good faith, may complete the accounting for the impacts of the Tax Act. As a result of the rate change, the Company’s net deferred tax assets were required to be revalued during the period in which the new legislation was enacted, and the Company recorded net income tax expense of $7.2 million during the fourth quarter of 2017, and recorded an additional discrete income tax benefit of $760,000 during 2018.

Included in the provisional tax expense recorded for the re-measurement of the Company’s net deferred tax assets recorded in 2017 were deferred items for which the tax effects were originally established through OCI. This resulted in a disproportionate tax effect for those items still recorded in AOCI. Under GAAP as of December 31, 2017, those items would continue to be reported in AOCI until such time as the underlying transactions were settled and would then be reclassified as a component of the provision for income taxes. However, in February 2018, the FASB issued an ASU that permits entities to reclassify the tax effects stranded in AOCI as a result of the Tax Act to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption in any period permitted. The Company early adopted this new guidance effective January 1, 2018. The adoption did not impact the Company’s Consolidated Statements of Operations, and resulted in a reclassification of $763,000 from accumulated other comprehensive income (loss) to retained earnings.

Net deferred tax assets increased to $38.3 million at December 31, 2019 compared to $35.6 million at December 31, 2018. The net increase in the total net deferred tax assets recorded as of December 31, 2019 was a result of $5.9 million in net deferred tax assets added related to the acquisition of Oak Park River Forest, offset by a decrease in net deferred tax assets related to unrealized losses on available-for-sale securities and utilization of operating loss carryforwards during the period.

The following were the significant components of the deferred tax assets and liabilities as of December 31, 2019 and 2018:

	2019			2018
Deferred tax assets:
Net operating losses and tax credits	$	26,108		$	25,851
Interest on non-accrual loans		3,201			3,039
Allowance for loan losses and loan basis		24,027			15,641
Deposits		42			90
Other real estate owned		413			393
Net unrealized holding losses on securities available-for-sale		—			4,622
Net unrealized holding losses on cash flow hedges		141			—
Accrued expenses		3,291			3,747
Other		2,225			2,075
Total deferred tax assets		59,448			55,458
Deferred tax liabilities:
Premises and equipment		(1,952	)		(3,752	)
Core deposit intangibles		(8,883	)		(9,306	)
Servicing assets		(5,422	)		(337	)
Trust preferred securities		(2,552	)		(2,710	)
Net unrealized holding gain on securities available-for-sale		(804	)		—
Net unrealized holding gain on cash flow hedges		—			(1,839	)
Other		(1,520	)		(1,871	)
Total deferred tax liabilities		(21,133	)		(19,815	)
Net deferred tax assets	$	38,315		$	35,643

Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of net operating loss and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50 percent occurs within a three‑year period. The Company has determined that such an ownership change occurred as of June 28, 2013 as a result of our recapitalization. This ownership change resulted in estimated limitations on the utilization of tax attributes, including net operating loss carryforwards and tax credits. Pursuant to Sections 382 and 383, a portion of the limited net operating loss carryforwards and credits become available to use each year. Approximately $756,000 of the restricted Federal net operating losses will become available each year related to Federal net operating losses generated prior to the 2013 recapitalization. In connection with the Company’s acquisition of Oak Park River Forest, the Company acquired $4.3 million of additional Federal net operating losses that are subject to an annual Section 382 limitation of approximately $781,000. These Federal net operating losses acquired in connection with the Oak Park River Forest acquisition do not expire.

The Company and the Bank file consolidated income tax returns. The Company and the Bank are no longer subject to United States federal income tax examinations for years before 2016 and state income tax examinations for years before 2015.