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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization.

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