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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Taxes |
Income Taxes | (14) Income Taxes We file a consolidated U.S. Federal and State income tax return. The current and deferred portions of net income tax expense included in the consolidated statements of income are presented below for the years ended December 31:
|  | 2018 |  | 2017 |  | 2016 |
|  | (Dollars in Thousands) |
Current |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 48,144 |  | $ | 56,974 |  | $ | 52,403 |
State |  |  | 3,370 |  |  | 2,662 |  |  | 3,362 |
Foreign |  |  | (5) |  |  | — |  |  | — |
Total current taxes |  |  | 51,509 |  |  | 59,636 |  |  | 55,765 |
Deferred |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 5,130 |  |  | 4,620 |  |  | 7,279 |
State |  |  | 13 |  |  | (50) |  |  | 27 |
Total deferred taxes |  |  | 5,143 |  |  | 4,570 |  |  | 7,306 |
Total income taxes |  | $ | 56,652 |  | $ | 64,206 |  | $ | 63,071 |
Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows:
|  | 2018 |  | 2017 |  | 2016 |
|  | (Dollars in Thousands) |
Computed expected tax expense |  | $ | 57,831 |  | $ | 77,643 |  | $ | 69,253 |
Change in taxes resulting from: |  |  |  |  |  |  |  |  |  |
Tax-exempt interest income |  |  | (3,101) |  |  | (4,701) |  |  | (3,940) |
State tax, net of federal income taxes, tax credit and refunds |  |  | 2,673 |  |  | 1,697 |  |  | 3,287 |
Resolution of IRS exam |  |  | — |  |  | (4,985) |  |  | — |
Other investment income |  |  | (1,561) |  |  | (3,198) |  |  | (3,694) |
Deferred tax adjustment due to federal tax rate change |  |  | (1,618) |  |  | (3,168) |  |  | — |
Net investment expense, low income housing investments |  |  | 2,518 |  |  | 387 |  |  | — |
Other |  |  | (90) |  |  | 531 |  |  | (1,835) |
Actual tax expense |  | $ | 56,652 |  | $ | 64,206 |  | $ | 63,071 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are reflected below:
|  | 2018 |  | 2017 |
|  | (Dollars in Thousands) |
Deferred tax assets: |  |  |  |  |  |  |
Loans receivable, principally due to the allowance for probable loan losses |  | $ | 12,257 |  | $ | 14,546 |
Other real estate owned |  |  | 2,459 |  |  | 2,053 |
Impairment charges on available-for-sale securities |  |  | 1,054 |  |  | 844 |
Accrued expenses |  |  | 81 |  |  | 81 |
Net unrealized losses on available for sale investment securities |  |  | 15,182 |  |  | 9,680 |
Other |  |  | 5,076 |  |  | 4,434 |
Total deferred tax assets |  |  | 36,109 |  |  | 31,638 |
Deferred tax liabilities: |  |  |  |  |  |  |
Bank premises and equipment, principally due to differences on depreciation |  |  | (12,596) |  |  | (10,940) |
Identified intangible assets and goodwill |  |  | (13,490) |  |  | (13,417) |
Other |  |  | (14,787) |  |  | (12,474) |
Total deferred tax liabilities |  |  | (40,873) |  |  | (36,831) |
Net deferred tax liability |  | $ | (4,764) |  | $ | (5,193) |
The net deferred tax liability of $4,764,000 at December 31, 2018 and $5,193,000 at December 31, 2017 is included in other liabilities in the consolidated statements of condition. On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. The Tax Act materially changes U.S. corporate income tax rates, among other things. We were in a net deferred tax liability position at the time the Tax Act was enacted and subsequently revalued the carrying value of the net deferred liability and its components to the new 21% effective tax rate. The change in the tax rate resulted in a net benefit to us of $4,786,000 and was included as a reduction to income tax expense in the consolidated income statement.

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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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