Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Reconciliation of Federal Statutory to Actual Tax Expense

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2017, 2016, 2015:



	2017			2016			2015
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 35%	$	46,758		$	38,031		$	31,867
Tax-exempt Interest Income	(11,127		)	(8,749		)	(7,083		)
Basis Difference on Sale of Insurance Subsidiary							2,252
Stock Compensation	(893		)	(61		)	(31		)
Earnings on Life Insurance	(2,302		)	(1,486		)	(1,012		)
Tax Credits	(811		)	(564		)	(583		)
Tax Cuts and Jobs Act - Rate Reform Impact	5,120
Other	779			438			255
Income Tax Expense	$	37,524		$	27,609		$	25,665

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following components for the years ended December 31, 2017, 2016, 2015:



	2017		2016		2015
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	22,001	$	18,998	$	21,221
State
Deferred:
Federal	9,969		8,233		3,952
Tax Cuts and Jobs Act - Rate Reform Impact	5,120
State	434		378		492
Income Tax Expense	$	37,524	$	27,609	$	25,665

Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets (liabilities) resulting from temporary differences were as follows at December 31, 2017 and 2016:



	2017			2016
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	19,526		$	26,315
Differences in Accounting for Loan Fees	1,458			1,918
Differences in Accounting for Loans and Securities	3,681			5,689
Deferred Compensation	4,448			3,471
Difference in Accounting for Pensions and Other Employee Benefits				83
Federal & State Income Tax Loss Carryforward and Credits	10,829			16,643
Other	365			4,210
Total Assets	40,307			58,329
Liabilities:
Differences in Depreciation Methods	5,245			8,216
Difference in Accounting for Pensions and Other Employee Benefits	823
State Income Tax	58			237
Net Unrealized Gain on Securities Available for Sale	2,898			557
Gain on FDIC Modified Whole Bank Transaction	602			1,126
Other	3,897			623
Total Liabilities	13,523			10,759
Net Deferred Tax Asset Before Valuation Allowance	26,784			47,570
Valuation allowance:
Beginning Balance	(9,815		)	(15,736		)
Decrease/(Increase) During the Year	2,849			5,921
Ending Balance	(6,966		)	(9,815		)
Net Deferred Tax Asset	$	19,818		$	37,755