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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income tax expense (benefit) attributable to continuing operations | Income tax expense attributable to continuing operations for each of the years ended December 31 is as follows (in thousands):
| 2019 |  | 2018 |  | 2017
Current tax expense : |  |  |  |  |
Federal | $ | 77,422 |  |  | $ | 73,921 |  |  | $ | 63,496 |
State | 4,538 |  |  | 4,822 |  |  | 860 |
Total current tax expense | 81,960 |  |  | 78,743 |  |  | 64,356 |
Deferred tax expense: |  |  |  |  |
Federal | 12,446 |  |  | 10,162 |  |  | 26,339 |
State | 2,250 |  |  | 1,603 |  |  | 1,826 |
Deferred tax revaluation expense | — |  |  | — |  |  | 31,486 |
Total deferred tax expense | 14,696 |  |  | 11,765 |  |  | 59,651 |
Total income tax expense | $ | 96,656 |  |  | $ | 90,508 |  |  | $ | 124,007 |
Income tax rate reconciliation | Pinnacle Financial's income tax expense differs from the amounts computed by applying the Federal income tax statutory rates of 21% to income before income taxes for 2019 and 2018 and 35% for 2017. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2019 is as follows (in thousands):
| 2019 |  | 2018 |  | 2017
Income tax expense at statutory rate | $ | 104,483 |  |  | $ | 94,489 |  |  | $ | 104,295 |
State excise tax expense, net of federal tax effect | 5,363 |  |  | 5,076 |  |  | 1,746 |
Tax-exempt securities | (11,078) |  |  | (7,222) |  |  | (5,666) |
Federal tax credits | (1,704) |  |  | (845) |  |  | (434) |
Bank owned life insurance | (3,646) |  |  | (2,764) |  |  | (2,778) |
Insurance premiums | (238) |  |  | (112) |  |  | (283) |
Revaluation of deferred tax assets and liabilities due to Tax Cuts and Jobs Act | — |  |  | — |  |  | 31,486 |
Excess tax benefits associated with equity compensation | (1,011) |  |  | (2,966) |  |  | (5,366) |
Other items | 4,487 |  |  | 4,852 |  |  | 1,007 |
Income tax expense | $ | 96,656 |  |  | $ | 90,508 |  |  | $ | 124,007 |
Components of deferred income taxes included in other assets | The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2019 and 2018 are as follows (in thousands):
| 2019 |  | 2018
Deferred tax assets: |  |  |
Loan loss allowance | $ | 23,051 |  |  | $ | 20,449 |
Loans | 20,808 |  |  | 29,453 |
Insurance | 673 |  |  | 1,955 |
Accrued liability for supplemental retirement agreements | 7,308 |  |  | 6,231 |
Restricted stock and stock options | 10,515 |  |  | 9,026 |
Securities | — |  |  | 15,974 |
Cash flow hedge | 1,373 |  |  | 459 |
Equity method investment | 425 |  |  | 602 |
Lease liability | 22,782 |  |  | 2,099 |
Other real estate owned | 691 |  |  | 1,158 |
Net federal operating loss carryforward and credits | 5,954 |  |  | 13,754 |
Annual incentive compensation | 12,626 |  |  | 9,996 |
Other deferred tax assets | 1,810 |  |  | 3,343 |
Total deferred tax assets | 108,016 |  |  | 114,499 |
Deferred tax liabilities: |  |  |
Depreciation and amortization | 12,455 |  |  | 11,769 |
Core deposit and other intangible assets | 13,253 |  |  | 11,475 |
Securities | 6,978 |  |  | — |
REIT dividends | 1,650 |  |  | 1,589 |
FHLB related liabilities | 925 |  |  | 925 |
Right-of-use assets and other leasing transactions | 21,169 |  |  | 639 |
Subordinated debt | 2,050 |  |  | 1,134 |
Partnership interests | 3,534 |  |  | 459 |
Other deferred tax liabilities | 1,875 |  |  | 1,758 |
Total deferred tax liabilities | 63,889 |  |  | 29,748 |
Net deferred tax assets | $ | 44,127 |  |  | $ | 84,751 |
Rollforward of uncertain tax positions | A reconciliation of the beginning and ending unrecognized tax benefit related to state uncertain tax positions is as follows (in thousands):
| 2019 |  | 2018 |  | 2017
Balance at January 1, | $ | 5,083 |  |  | $ | 2,838 |  |  | $ | 1,274 |
Increases due to tax positions taken during the current year | 1,827 |  |  | 2,245 |  |  | 1,564 |
Increases due to tax positions taken during a prior year | — |  |  | — |  |  | — |
Decreases due to the lapse of the statute of limitations during the current year | — |  |  | — |  |  | — |
Decreases due to settlements with the taxing authorities during the current year | — |  |  | — |  |  | — |
Balance at December 31, | $ | 6,910 |  |  | $ | 5,083 |  |  | $ | 2,838 |

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