Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Tax Expense

The Company files a consolidated federal income tax return. Income tax expense is comprised of the following (dollars in thousands):

	Year Ended December 31 ,
	2018			2017			2016
Current federal income tax	$	28,359		$	34,421		$	30,381
Current state income tax		92			99			99
Deferred federal income tax expense (benefit)		(250	)		(53	)		673
Restatement of net deferred tax liability due to change in income tax rate		(664	)		(7,650	)		—
Income tax expense	$	27,537		$	26,817		$	31,153

Percentage of Pretax Earnings, Differs from Statutory Federal Income Tax Rate

Income tax expense, as a percentage of pretax earnings, differs from the statutory federal income tax rate as follows:

	As a Percent of Pretax Earnings
	2018			2017			2016
Statutory federal income tax rate		21.0	%		35.0	%		35.0	%
Restatement of net deferred tax liability due to change in income tax rate		(0.4	)		(5.3	)		—
Reductions in tax rate resulting from interest income exempt from federal income tax		(5.2	)		(11.5	)		(12.1	)
Effect of state income tax		0.1			0.1			0.1
ESOP tax deduction		(0.1	)		(0.2	)		(0.2	)
Other		0.1			0.1			0.1
Effective income tax rate		15.5	%		18.2	%		22.9	%

Schedule of Deferred Tax Assets and Liabilities

The approximate effects of each type of difference that gave rise to the Company’s deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows (dollars in thousands):

	2018			2017
Deferred tax assets:
Tax basis of loans in excess of financial statement basis	$	12,010		$	10,550
Minimum liability in defined benefit plan		352			766
Recognized for financial reporting purposes but not yet for tax purposes:
Deferred compensation		2,056			1,818
Write-downs and adjustments to other real estate owned and repossessed assets		49			11
Other deferred tax assets		208			79
Total deferred tax assets	$	14,675		$	13,224
Deferred tax liabilities:
Financial statement basis of fixed assets in excess of tax basis	$	4,182			3,343
Intangible asset amortization deductible for tax purposes, but not for financial reporting purposes		11,263			9,926
Recognized for financial reporting purposes but not yet for tax purposes:
Accretion on investment securities		745			1,039
Pension plan contributions		816			1,086
Net unrealized gain on investment securities available-for-sale		1,111			9,420
Other deferred tax liabilities		34			31
Total deferred tax liabilities	$	18,151		$	24,845
Net deferred tax asset (liability)	$	(3,476	)	$	(11,621	)