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Income Tax | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax The components of income tax expense are as follows:
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
|  | (in thousands)
Current expense |  |  |  |  |  |
Federal |  | $ | 40,471 |  |  | $ | 33,400 |  |  | $ | 39,708 |
State |  | 6,359 |  |  | 5,446 |  |  | 3,016 |
Total current tax expense |  | $ | 46,830 |  |  | $ | 38,846 |  |  | $ | 42,724 |
Deferred tax expense (benefit) |  |  |  |  |  |
Federal |  | $ | 60 |  |  | $ | (291 | ) |  | $ | 21,524 |
State |  | 270 |  |  | 399 |  |  | 907 |
Total deferred tax expense |  | 330 |  |  | 108 |  |  | 22,431 |
Total |  | $ | 47,160 |  |  | $ | 38,954 |  |  | $ | 65,155 |
Significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | December 31,
|  | 2019 |  | 2018
|  | (in thousands)
Deferred tax assets: |  |  |  |
ALLL |  | $ | 20,489 |  |  | $ | 20,578 |
Lease liability |  | 14,776 |  |  | — |
Deferred compensation |  | 11,079 |  |  | 9,501 |
Stock options and restricted stock |  | 2,016 |  |  | 1,850 |
OREO |  | — |  |  | 288 |
Nonaccrual interest |  | 112 |  |  | 446 |
Unrealized loss on investment securities |  | — |  |  | 10,129 |
Net operating losses and credit carryforwards |  | 4,136 |  |  | 5,356 |
Other |  | 245 |  |  | 733 |
Total deferred tax assets |  | 52,853 |  |  | 48,881 |
Deferred tax liabilities: |  |  |  |
Asset purchase tax basis difference |  | (7,888 | ) |  | (7,229 | )
Right of use asset |  | (13,415 | ) |  | — |
FHLB stock dividends |  | (789 | ) |  | (790 | )
Deferred loan fees |  | (4,097 | ) |  | (4,399 | )
Unrealized gain on investment securities |  | (10,091 | ) |  | — |
Purchase accounting |  | (8,946 | ) |  | (9,245 | )
Depreciation |  | (3,152 | ) |  | (2,609 | )
Cash flow hedge |  | (3,452 | ) |  | — |
Other |  | (100 | ) |  | (195 | )
Total deferred tax liabilities |  | (51,930 | ) |  | (24,467 | )
Net deferred tax asset |  | $ | 923 |  |  | $ | 24,414 |
A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows:
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
|  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
|  | (dollars in thousands)
Income tax based on statutory rate |  | $ | 50,738 |  |  | 21 | % |  | $ | 44,485 |  |  | 21 | % |  | $ | 62,262 |  |  | 35 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Tax exempt instruments |  | (6,771 | ) |  | (3 | )% |  | (6,423 | ) |  | (3 | )% |  | (8,485 | ) |  | (5 | )%
Bank owned life insurance |  | (1,963 | ) |  | (1 | )% |  | (1,261 | ) |  | (1 | )% |  | (3,351 | ) |  | (2 | )%
Acquisition costs |  | — |  |  | — | % |  | — |  |  | — | % |  | 825 |  |  | 1 | %
Deferred tax asset revaluation |  | — |  |  | — | % |  | — |  |  | — | % |  | 12,210 |  |  | 7 | %
State income tax, net of federal benefit |  | 5,134 |  |  | 2 | % |  | 4,931 |  |  | 2 | % |  | 2,550 |  |  | 1 | %
Other, net |  | 22 |  |  | 1 | % |  | (2,778 | ) |  | (1 | )% |  | (856 | ) |  | — | %
Income tax provision |  | $ | 47,160 |  |  | 20 | % |  | $ | 38,954 |  |  | 18 | % |  | $ | 65,155 |  |  | 37 | %
As of December 31, 2019 and 2018, we had no unrecognized tax benefits. Our policy is to recognize interest and penalties on unrecognized tax benefits in “Provision for income taxes” in the Consolidated Statements of Income. There were no amounts related to interest and penalties recognized for the years ended December 31, 2019 and 2018. As a result of recent acquisitions, the Company has net operating loss carryforwards in the federal, Idaho and Oregon jurisdictions of $15.8 million, $14.3 million and $121 thousand, respectively, which begin to expire in 2024. The Tax Cuts and Jobs Act was signed into law on December 22, 2017. The law included significant changes to the U.S. corporate tax system, including a Federal corporate rate reduction from 35% to 21%. In 2017, the Company applied the newly enacted corporate federal income tax rate of 21% resulting in a $12.2 million increase in tax expense from the re-measurement of its net deferred tax assets.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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