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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Tax Disclosure | Note 12 - Income Taxes The current and deferred amounts of income tax expense for 2017, 2016 and 2015 are as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  | (dollars in thousands) |
Federal |  | $ | 21,090 |  |  | $ | 10,173 |  |  | $ | 22,512 |
State |  |  | 505 |  |  |  | (366) |  |  |  | 907 |
Subtotal |  |  | 21,595 |  |  |  | 9,807 |  |  |  | 23,419 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 3,876 |  |  |  | 2,682 |  |  |  | (3,835) |
State |  |  | (177) |  |  |  | (713) |  |  |  | 342 |
Subtotal |  |  | 3,699 |  |  |  | 1,969 |  |  |  | (3,493) |
Income tax expense |  | $ | 25,294 |  |  | $ | 11,776 |  |  | $ | 19,926 |
The Tax Reform Act was signed into law on December 22, 2017. Pursuant to the Securities and Exchange Commission Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), given the amount and complexity of the changes in tax law resulting from the Tax Reform Act, the Company has not finalized the accounting for the income tax effects of the Tax Reform Act. This includes the re-measurement of deferred taxes. The impact of the Tax Reform Act may differ from this estimate, during the one-year measurement period due to, among other things, further refinement of the Company’s calculations, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Tax Reform Act. As a result of the Tax Reform Act, the Company recorded a tax charge of approximately $5.6 million primarily due to a re-measurement of deferred tax assets and liabilities. Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory federal tax rate for the following reasons:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (dollars in thousands) |
Income before income tax expense |  | $ | 68,514 |  |  | $ | 42,858 |  |  | $ | 61,237 |
Federal statutory rate |  |  | 35 | % |  |  | 35 | % |  |  | 35% |
Computed “expected” Federal income tax expense |  |  | 23,980 |  |  |  | 15,000 |  |  |  | 21,433 |
State tax, net of federal tax benefit |  |  | 213 |  |  |  | (701) |  |  |  | 812 |
Impact of Tax Reform Act |  |  | 5,623 |  |  |  | - |  |  |  | - |
Bank owned life insurance |  |  | (1,113) |  |  |  | (896) |  |  |  | (624) |
Tax-exempt interest and dividends |  |  | (2,123) |  |  |  | (1,714) |  |  |  | (1,584) |
Tax benefits from stock based compensation |  |  | (348) |  |  |  | - |  |  |  | - |
Other, net |  |  | (938) |  |  |  | 87 |  |  |  | (111) |
Income tax expense |  | $ | 25,294 |  |  | $ | 11,776 |  |  |  | $19,926 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability at December 31, 2017 and 2016 are presented in the following table:
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  | (dollars in thousands) |
Allowance for loan losses |  |  | 8,848 |  |  |  | 10,374 |
Purchase accounting |  |  | 2,310 |  |  |  | 4,881 |
Pension actuarial losses |  |  | 1,647 |  |  |  | 2,439 |
New Jersey net operating loss |  |  | 1,310 |  |  |  | 1,004 |
Deferred compensation |  |  | 1,184 |  |  |  | 2,277 |
Unrealized losses on securities and swaps |  |  | 483 |  |  |  | - |
Deferred loan costs, net of fees |  |  | 474 |  |  |  | 613 |
Accrued rent |  |  | 459 |  |  |  | 617 |
Capital lease |  |  | 211 |  |  |  | 139 |
Nonaccrual interest |  |  | 158 |  |  |  | 470 |
Other |  |  | 7 |  |  |  | 14 |
Total deferred tax assets |  | $ | 17,091 |  |  | $ | 22,828 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Employee benefit plans |  | $ | (1,501) |  |  | $ | (2,275) |
Depreciation |  |  | (434) |  |  |  | (1,039) |
Prepaid expenses |  |  | (174) |  |  |  | (345) |
Market discount accretion |  |  | (60) |  |  |  | (235) |
Unrealized gains on securities and swaps |  |  | (224) |  |  |  | (449) |
Other |  |  | (28) |  |  |  | (33) |
Total deferred tax liabilities |  |  | (2,421) |  |  |  | (4,376) |
Net deferred tax assets |  | $ | 14,670 |  |  | $ | 18,452 |
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets for state purposes is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible, while for Federal purposes the deferred tax assets can also be realized through tax carrybacks. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income, and tax planning strategies in making this assessment. During 2017 and 2016, based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes the net deferred tax assets are more likely than not to be realized. There are no unrecorded tax benefits and the Company does not expect the total amount of unrecognized income tax benefits to significantly increase in the next twelve months. The Company’s federal income tax returns are open and subject to examination from the 2014 tax return year and forward. The Company’s state income tax returns are generally open from the 2013 and later tax return years based on individual state statutes of limitations.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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