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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Summary of components of income tax provision | summary of income tax provision follows for the years ended December 31:
| Current |  | Deferred |  | Total
| (Dollars in thousands)
2018 |  |  |  |  |
Federal | $ | 35,401 |  |  | $ | 2,336 |  |  | $ | 37,737 |
State | 27,749 |  |  | 406 |  |  | 28,155 |
| $ | 63,150 |  |  | $ | 2,742 |  |  | $ | 65,892 |
2017 |  |  |  |  |
Federal | $ | 64,910 |  |  | $ | 31,464 |  |  | $ | 96,374 |
State | 24,739 |  |  | 3,276 |  |  | 28,015 |
| $ | 89,649 |  |  | $ | 34,740 |  |  | $ | 124,389 |
2016 |  |  |  |  |
Federal | $ | 50,780 |  |  | $ | 4,198 |  |  | $ | 54,978 |
State | 20,922 |  |  | 1,552 |  |  | 22,474 |
| $ | 71,702 |  |  | $ | 5,750 |  |  | $ | 77,452 |
Reconciliation of effective tax rate | A reconciliation of the difference between the federal statutory income tax rate and the effective tax rate is shown in the following table for the years indicated:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
Statutory tax rate | 21.00 | % |  | 35.00 | % |  | 35.00 | %
State taxes-net of federal tax effect | 8.56 | % |  | 7.04 | % |  | 7.28 | %
Rate change - federal and state | 0.17 | % |  | 9.36 | % |  | — | %
CRA investment tax credit | (3.96 | )% |  | (3.50 | )% |  | (2.40 | )%
Bank owned life insurance | (0.20 | )% |  | (0.09 | )% |  | (0.26 | )%
Tax exempt municipal bonds and loans | (0.21 | )% |  | (0.45 | )% |  | (0.22 | )%
Nondeductible transaction costs | — | % |  | (0.02 | )% |  | 0.80 | %
Other | 0.43 | % |  | (0.19 | )% |  | 0.31 | %
Effective income tax rate | 25.79 | % |  | 47.15 | % |  | 40.51 | %
Components of deferred tax assets and liabilities | Deferred tax assets and liabilities at December 31, 2018 and 2017 are comprised of the following:
| At December 31,
| 2018 |  | 2017
| (Dollars in thousands)
Deferred tax assets: |  |  |
Purchase accounting fair value adjustment | $ | 16,239 |  |  | $ | 21,508 |
Statutory bad debt deduction less than financial statement provision | 22,904 |  |  | 20,162 |
Net operating loss carry-forward | 2,092 |  |  | 2,351 |
Investment security provision | 593 |  |  | 593 |
State tax deductions | 4,240 |  |  | 4,304 |
Accrued compensation | 148 |  |  | 149 |
Deferred compensation | 175 |  |  | 214 |
Mark to market on loans held for sale | 260 |  |  | 764 |
Depreciation | 202 |  |  | 221 |
Nonaccrual loan interest | 6,027 |  |  | 6,272 |
Other real estate owned | 585 |  |  | 1,753 |
FDIC loss share receivable | — |  |  | 362 |
Unrealized loss on securities available for sale | 13,631 |  |  | 8,961 |
Non-qualified stock option and restricted share expense | 1,420 |  |  | 1,339 |
Goodwill | 117 |  |  | 203 |
Lease expense | 60 |  |  | — |
Other | 2,013 |  |  | 3,053 |
Total Deferred Tax Assets | $ | 70,706 |  |  | $ | 72,209 |
Deferred tax liabilities: |  |  |
FHLB stock dividends | $ | (617 | ) |  | $ | (695 | )
Deferred loan costs | (6,816 | ) |  | (5,857 | )
State taxes deferred and other | (2,655 | ) |  | (3,229 | )
Prepaid expenses | (1,802 | ) |  | (1,542 | )
Amortization of intangibles | (4,524 | ) |  | (5,236 | )
Lease expense | — |  |  | (447 | )
Other | (3,379 | ) |  | — |
Total Deferred Tax Liabilities | $ | (19,793 | ) |  | $ | (17,006 | )
Net deferred tax assets: | $ | 50,913 |  |  | $ | 55,203 |
Summary of net operating loss carryforwards | A summary of the Company’s net operating loss carry-forwards is as follows:
|  | Federal |  | State
|  | Remaining Amount |  | Expires |  | Annual Limitation |  | Remaining Amount |  | Expires |  | Annual Limitation
|  | (Dollars in thousands)
| 2018 |  |  |  |  |  |  |  |  |  |  |
| Saehan Bank (acquired by Wilshire) | $ | 2,714 |  |  | 2030 |  | $ | 226 |  |  | $ | 2,714 |  |  | 2030 |  | $ | 226 |
| Korea First Bank of New York | 494 |  |  | 2019 |  | 497 |  |  | — |  |  | N/A |  | — |
| Pacific International Bank | 5,669 |  |  | 2032 |  | 420 |  |  | — |  |  | N/A |  | — |
| Total | $ | 8,877 |  |  |  |  | $ | 1,143 |  |  | $ | 2,714 |  |  |  |  | $ | 226 |
| 2017 |  |  |  |  |  |  |  |  |  |  |
| Saehan Bank (acquired by Wilshire) | $ | 2,940 |  |  | 2030 |  | $ | 226 |  |  | $ | 2,940 |  |  | 2030 |  | $ | 226 |
| Korea First Bank of New York | 991 |  |  | 2019 |  | 497 |  |  | — |  |  | N/A |  | — |
| Pacific International Bank | 6,089 |  |  | 2032 |  | 420 |  |  | — |  |  | N/A |  | — |
| Total | $ | 10,020 |  |  |  |  | $ | 1,143 |  |  | $ | 2,940 |  |  |  |  | $ | 226 |
Reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2018 and 2017 is as follows:
| At December 31,
| 2018 |  | 2017
| (Dollars in thousands)
Balance at January 1, | $ | 2,125 |  |  | $ | 2,187 |
Additions based on tax positions related to prior years | 247 |  |  | 3 |
Expiration of the statute of limitations for assessment of taxes | — |  |  | — |
Settlements with taxing authorities | (58 | ) |  | (65 | )
Balance at December 31, | $ | 2,314 |  |  | $ | 2,125 |

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