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Income Taxes (Notes) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of federal and state income tax expense for the years ended December 31, 2019, 2018 and 2017 were as follows (in thousands):
|  | 2019 |  | 2018 |  | 2017
Current |  |  |  |  |  |
Federal |  | $ | 8,538 |  |  | $ | 4,841 |  |  | $ | 9,825 |
State |  | 4,900 |  |  | 2,781 |  |  | 2,719 |
Total Current |  | 13,438 |  |  | 7,622 |  |  | 12,544 |
Deferred |  |  |  |  |  |  |  |  |
Federal |  | 1,368 |  |  | 2,818 |  |  | 2,047 |
State |  | 517 |  |  | 1,465 |  |  | 451 |
Total Deferred |  | 1,885 |  |  | 4,283 |  |  | 2,498 |
Total |  | $ | 15,323 |  |  | $ | 11,905 |  |  | $ | 15,042 |
Recorded income tax expense differs from the expected tax expense (computed by applying the applicable statutory U.S. federal tax rate of 21% for 2019 and 2018 and 35% for 2017 to income before income taxes). During 2019, 2018 and 2017, the Company was in a graduated tax rate position. The principal reasons for the difference are as follows (in thousands):
|  | 2019 |  | 2018 |  | 2017
Expected income taxes |  | $ | 13,286 |  |  | $ | 10,186 |  |  | $ | 14,604 |
Effects of: |  |  |  |  |  |  |  |  |
Tax-exempt income from bank owned life insurance |  | (563 | ) |  | (283 | ) |  | (573 | )
Other tax exempt income |  | (1,701 | ) |  | (1,598 | ) |  | (2,223 | )
Nondeductible interest expense |  | 70 |  |  | 43 |  |  | 28 |
State taxes, net of federal taxes |  | 4,280 |  |  | 3,354 |  |  | 2,062 |
Other items |  | 116 |  |  | 218 |  |  | (266 | )
Adjustment of deferred tax assets and liabilities for enacted change in tax laws |  | — |  |  | — |  |  | 1,410 |
Effect of marginal tax rate |  | (165 | ) |  | (15 | ) |  | — |
Total |  | $ | 15,323 |  |  | $ | 11,905 |  |  | $ | 15,042 |
On December 22, 2017, the United States enacted certain tax reforms through the Tax Cuts and Jobs Act, which changes existing tax laws, most significantly a change in the statutory corporate tax rate from 35% to 21%. As a result of this enactment, the Company incurred additional one-time income tax expense of approximately $1.4 million during the fourth quarter of 2017, primarily due to re-measurement of deferred tax assets and liabilities. Tax expense recorded by the Company during 2019, 2018 and 2017 did not include any interest or penalties. Tax returns filed with the Internal Revenue Service and Illinois Department of Revenue are subject to review by law under a three-year statute of limitations. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2016. The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below (in thousands):
|  | 2019 |  | 2018
Deferred tax assets: |  |  |  |
Allowance for loan losses |  | $ | 7,512 |  |  | $ | 7,251 |
Available-for-sale investment securities |  | — |  |  | 2,644 |
Deferred compensation |  | 3,487 |  |  | 3,593 |
Supplemental retirement |  | 133 |  |  | 152 |
Core deposit premium and other intangible assets |  | 889 |  |  | 657 |
Stock compensation expense |  | 54 |  |  | 43 |
Deferred revenue |  | 521 |  |  | — |
Acquisition costs |  | 265 |  |  | 190 |
Other |  | 749 |  |  | 977 |
Total gross deferred tax assets |  | 13,610 |  |  | 15,507 |
Deferred tax liabilities: |  |  |  |  |  |
Deferred loan costs |  | 13 |  |  | 126 |
Intangibles amortization |  | 4,584 |  |  | 4,135 |
Prepaid expenses |  | 754 |  |  | 297 |
FHLB stock dividend |  | 23 |  |  | 232 |
Depreciation |  | 2,500 |  |  | 2,149 |
Deferred revenue |  | — |  |  | 81 |
Purchase accounting |  | 7,906 |  |  | 6,066 |
Accumulated accretion |  | 304 |  |  | 199 |
Mortgage servicing rights |  | 411 |  |  | 578 |
Available-for-sale investment securities |  | 3,415 |  |  | — |
Total gross deferred tax liabilities |  | 19,910 |  |  | 13,863 |
Net deferred tax assets (liabilities) |  | $ | (6,300 | ) |  | $ | 1,644 |
Net deferred tax assets are recorded in other assets on the consolidated balance sheets, while net deferred tax liabilities are recorded in other liabilities. No valuation allowance related to deferred tax assets was recorded at December 31, 2019 and 2018 as management believes it is more likely than not that the deferred tax assets will be fully realized.

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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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