Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of federal and state income tax expense (benefit)

The components of federal and state income tax expense for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands):



	2018		2017		2016
Current
Federal	$	4,841	$	9,825	$	11,375
State	2,781		2,719		2,953
Total Current	7,622		12,544		14,328
Deferred
Federal	2,818		2,047		(1,940		)
State	1,465		451		(448		)
Total Deferred	4,283		2,498		(2,388		)
Total	$	11,905	$	15,042	$	11,940

Effective income tax rate reconciliation

The principal reasons for the difference are as follows (in thousands):



	2018			2017			2016
Expected income taxes	$	10,186		$	14,604		$	11,823
Effects of:
Tax-exempt income from bank owned life insurance	(283		)	(573		)	(235		)
Other tax exempt income	(1,598		)	(2,223		)	(1,577		)
Nondeductible interest expense	43			28			21
State taxes, net of federal taxes	3,354			2,062			1,628
Other items	218			(266		)	280
Adjustment of deferred tax assets and liabilities for enacted change in tax laws	—			1,410			—
Effect of marginal tax rate	(15		)	—			—
Total	$	11,905		$	15,042		$	11,940

Deferred tax assets and deferred tax liabilities

The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below (in thousands):



	2018		2017
Deferred tax assets:
Allowance for loan losses	$	7,251	$	5,694
Available-for-sale investment securities	2,644		941
Deferred compensation	3,593		749
Supplemental retirement	152		170
Core deposit premium and other intangible assets	657		664
Pass thru activities	—		126
Other-than-temporary impairment on securities	—		317
Stock compensation expense	43		—
Purchase accounting	—		475
Acquisition costs	190		210
Other	977		596
Total gross deferred tax assets	15,507		9,942
Deferred tax liabilities:
Deferred loan costs	126		26
Intangibles amortization	4,135		3,685
Prepaid expenses	297		232
FHLB stock dividend	232		158
Depreciation	2,149		1,207
Deferred revenue	81		58
Purchase accounting	6,066		—
Accumulated accretion	199		112
Mortgage servicing rights	578		240
Total gross deferred tax liabilities	13,863		5,718
Net deferred tax assets	$	1,644	$	4,224