Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of components of income tax expense (benefit)

	2017		2016		2015
Current federal	$	(2,407)	$	399	$	220
Deferred federal		11,724		6,824		7,023
Deferred state		372		1,597		1,733
Expense due to enactment of federal tax reform		9,475		-		-
Total income tax expenses	$	19,164	$	8,820	$	8,976

Schedule of components of deferred tax assets and liabilities

	2017		2016
Allowance for loan and lease losses	$	5,377	$	7,057
Deferred compensation		650		735
Amortization of core deposit intangible		827		1,401
Goodwill amortization/impairment		6,087		10,127
Stock based compensation		866		946
OREO write-downs		2,385		5,110
Federal net operating loss (“NOL”) carryforward		7,240		19,362
State net operating loss (“NOL”) carryforward		7,020		7,735
Deferred tax credit		-		2,058
Other assets		1,017		1,199
Total deferred tax assets		31,469		55,730
Accumulated depreciation on premises and equipment		(384)		(681)
Mortgage servicing rights		(2,086)		(2,760)
State tax benefits		(2,389)		(4,127)
Other liabilities		(545)		(526)
Total deferred tax liabilities		(5,404)		(8,094)
Net deferred tax asset before adjustments related to other comprehensive loss		26,065		47,636
Tax effect of adjustments related to other comprehensive loss		(709)		5,828
Net deferred tax asset	$	25,356	$	53,464

Schedule of components of provision for deferred income taxes

	2017		2016		2015
Provision for loan and lease losses	$	1,680	$	42	$	2,480
Deferred Compensation		85		(45)		97
Amortization of core deposit intangible		574		228		230
Stock based compensation		80		(132)		(151)
OREO write-downs		2,725		1,807		1,722
Federal net operating loss carryforward		12,122		4,743		2,896
State net operating loss carryforward		715		1,011		659
Deferred tax credit		2,058		(309)		(198)
Depreciation		(297)		80		(201)
Mortgage servicing rights		(674)		276		164
Goodwill amortization/impairment		4,040		1,496		1,506
State tax benefits		(1,738)		(559)		(604)
Other, net		201		(217)		156
Total deferred tax expense	$	21,571	$	8,421	$	8,756

Schedule of difference between effective tax rates from federal statutory rates

Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31 due to the following:

	2017		2016		2015
Tax at statutory federal income tax rate	$	11,817	$	8,577	$	8,526
Nontaxable interest income, net of disallowed interest deduction		(1,976)		(347)		(253)
BOLI income		(501)		(449)		(487)
State income taxes, net of federal benefit		1,775		1,148		1,126
Impact of Federal tax rate change		9,475		-		-
Impact of Illinois tax rate change		(1,566)		-		-
Other, net		140		(109)		64
Total tax at effective tax rate	$	19,164	$	8,820	$	8,976