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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Taxes |
Income Taxes | Note 12: Income Taxes Income tax expense for years ending December 31 were as follows:
|  | 2017 |  | 2016 |  | 2015
Current federal |  | $ | (2,407) |  | $ | 399 |  | $ | 220
Deferred federal |  |  | 11,724 |  |  | 6,824 |  |  | 7,023
Deferred state |  |  | 372 |  |  | 1,597 |  |  | 1,733
Expense due to enactment of federal tax reform |  |  | 9,475 |  |  | - |  |  | -
Total income tax expenses |  | $ | 19,164 |  | $ | 8,820 |  | $ | 8,976
The following were the components of the deferred tax assets and liabilities as of December 31:
|  | 2017 |  | 2016
Allowance for loan and lease losses |  | $ | 5,377 |  | $ | 7,057
Deferred compensation |  |  | 650 |  |  | 735
Amortization of core deposit intangible |  |  | 827 |  |  | 1,401
Goodwill amortization/impairment |  |  | 6,087 |  |  | 10,127
Stock based compensation |  |  | 866 |  |  | 946
OREO write-downs |  |  | 2,385 |  |  | 5,110
Federal net operating loss (“NOL”) carryforward |  |  | 7,240 |  |  | 19,362
State net operating loss (“NOL”) carryforward |  |  | 7,020 |  |  | 7,735
Deferred tax credit |  |  | - |  |  | 2,058
Other assets |  |  | 1,017 |  |  | 1,199
Total deferred tax assets |  |  | 31,469 |  |  | 55,730
Accumulated depreciation on premises and equipment |  |  | (384) |  |  | (681)
Mortgage servicing rights |  |  | (2,086) |  |  | (2,760)
State tax benefits |  |  | (2,389) |  |  | (4,127)
Other liabilities |  |  | (545) |  |  | (526)
Total deferred tax liabilities |  |  | (5,404) |  |  | (8,094)
Net deferred tax asset before adjustments related to other comprehensive loss |  |  | 26,065 |  |  | 47,636
Tax effect of adjustments related to other comprehensive loss |  |  | (709) |  |  | 5,828
Net deferred tax asset |  | $ | 25,356 |  | $ | 53,464
On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”), was signed into law. Among other things, the Act reduces the corporate federal tax rate from 35% to 21% effective January 1, 2018. As a result the Company is required to remeasure, through income tax expense, deferred tax assets and liabilities using the enacted rate at which these items are expected to recover or settle. The re-measurement of the Company’s net deferred tax asset resulted in additional income tax expense of approximately $9.5 million. The Company also re-measured the net deferred tax asset as a result of the Illinois income tax increase effective as of July 1, 2017, resulting in a benefit of approximately $1.6 million. At December 31, 2017, the Company had a $34.5 million federal net operating loss carryforward of which, $10.6 million expires in 2031, $8.6 million expires in 2032, and $15.3 million expires in 2033. The Company had a $74.1 million state net operating loss carryforward of which $73.6 million expires in 2025, and the rest expires starting in 2026. In addition, the Company had a $2.6 million alternative minimum tax credit carryforwards which do not expire and are now carried as tax receivables since, under the new federal law, the Company expects to recover the entire amount by 2022 via refund. The components of the provision for deferred income tax expense for the years ending December 31 were as follows:
| 2017 |  | 2016 |  | 2015
Provision for loan and lease losses | $ | 1,680 |  | $ | 42 |  | $ | 2,480
Deferred Compensation |  | 85 |  |  | (45) |  |  | 97
Amortization of core deposit intangible |  | 574 |  |  | 228 |  |  | 230
Stock based compensation |  | 80 |  |  | (132) |  |  | (151)
OREO write-downs |  | 2,725 |  |  | 1,807 |  |  | 1,722
Federal net operating loss carryforward |  | 12,122 |  |  | 4,743 |  |  | 2,896
State net operating loss carryforward |  | 715 |  |  | 1,011 |  |  | 659
Deferred tax credit |  | 2,058 |  |  | (309) |  |  | (198)
Depreciation |  | (297) |  |  | 80 |  |  | (201)
Mortgage servicing rights |  | (674) |  |  | 276 |  |  | 164
Goodwill amortization/impairment |  | 4,040 |  |  | 1,496 |  |  | 1,506
State tax benefits |  | (1,738) |  |  | (559) |  |  | (604)
Other, net |  | 201 |  |  | (217) |  |  | 156
Total deferred tax expense | $ | 21,571 |  | $ | 8,421 |  | $ | 8,756
Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31 due to the following:
|  | 2017 |  | 2016 |  | 2015
Tax at statutory federal income tax rate |  | $ | 11,817 |  | $ | 8,577 |  | $ | 8,526
Nontaxable interest income, net of disallowed interest deduction |  |  | (1,976) |  |  | (347) |  |  | (253)
BOLI income |  |  | (501) |  |  | (449) |  |  | (487)
State income taxes, net of federal benefit |  |  | 1,775 |  |  | 1,148 |  |  | 1,126
Impact of Federal tax rate change |  |  | 9,475 |  |  | - |  |  | -
Impact of Illinois tax rate change |  |  | (1,566) |  |  | - |  |  | -
Other, net |  |  | 140 |  |  | (109) |  |  | 64
Total tax at effective tax rate |  | $ | 19,164 |  | $ | 8,820 |  | $ | 8,976
The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income. Significant positive evidence evaluated included recent and projected earnings, significantly improved asset quality and an improved capital position. No negative evidence was noted.

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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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