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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The current and deferred components of income tax expense on the consolidated statements of income were as follows:
|  | For The Year Ended December 31,
(In thousands) |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 11,876 |  |  | $ | 14,102 |  |  | $ | 14,529 |
State |  | 1,241 |  |  | 1,206 |  |  | 1,289 |
|  | 13,117 |  |  | 15,308 |  |  | 15,818 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  | 1,230 |  |  | (2,541 | ) |  | 4,117 |
State |  | 29 |  |  | (61 | ) |  | (320 | )
Change in federal corporate income tax rate(1) |  | — |  |  | — |  |  | 14,263 |
|  | 1,259 |  |  | (2,602 | ) |  | 18,060 |
Income tax expense |  | $ | 14,376 |  |  | $ | 12,706 |  |  | $ | 33,878 |
The income tax expense differs from the amount computed by applying the statutory federal income tax rate as a result of the following:
|  | For The Year Ended December 31,
(Dollars in thousands) |  | 2019 |  | 2018 |  | 2017
Computed tax expense(1) |  | $ | 15,032 |  |  | $ | 13,813 |  |  | $ | 21,824 |
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |
State taxes, net of federal benefit |  | 1,003 |  |  | 905 |  |  | 630 |
Tax exempt income |  | (738 | ) |  | (741 | ) |  | (1,291 | )
Income from life insurance |  | (509 | ) |  | (510 | ) |  | (829 | )
Low income housing credits |  | (430 | ) |  | (465 | ) |  | (366 | )
Share-based awards |  | (60 | ) |  | (250 | ) |  | (390 | )
Change in federal corporate income tax rate(1) |  | — |  |  | — |  |  | 14,263 |
Other |  | 78 |  |  | (46 | ) |  | 37 |
Income tax expense |  | $ | 14,376 |  |  | $ | 12,706 |  |  | $ | 33,878 |
Income before income taxes |  | $ | 71,579 |  |  | $ | 65,777 |  |  | $ | 62,354 |
Effective tax rate |  | 20.1 | % |  | 19.3 | % |  | 54.3 | %
(1) | On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of $14.3 million.
Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of the dates indicated:
|  | December 31,
|  | 2019 |  | 2018
(In thousands) |  | Asset |  | Liability |  | Asset |  | Liability
Net operating loss and tax credit carryforward |  | $ | 10,421 |  |  | $ | — |  |  | $ | 11,250 |  |  | $ | — |
Allowance for loan losses |  | 5,416 |  |  | — |  |  | 5,318 |  |  | — |
Pension and other benefits |  | 4,492 |  |  | — |  |  | 3,881 |  |  | — |
Net unrealized losses on derivative instruments |  | 1,656 |  |  | — |  |  | 1,215 |  |  | — |
Deferred compensation and benefits |  | 919 |  |  | — |  |  | 927 |  |  | — |
Depreciation |  | — |  |  | (3,053 | ) |  | — |  |  | (2,913 | )
Deferred loan origination fees |  | — |  |  | (2,119 | ) |  | — |  |  | (1,860 | )
Net unrealized (gains) losses on AFS debt securities |  |  |  |  | (890 | ) |  | 4,882 |  |  | — |
Other |  |  |  |  | (19 | ) |  | 353 |  |  | — |
Gross deferred tax assets (liabilities) |  | $ | 22,904 |  |  | $ | (6,081 | ) |  | $ | 27,826 |  |  | $ | (4,773 | )
Valuation allowance on deferred tax assets |  |  |  | — |  |  |  |  | — |
Net deferred tax assets |  |  |  | $ | 16,823 |  |  |  |  | $ | 23,053 |
At December 31, 2019 and 2018, the Company had $48.2 million and $52.1 million, respectively, in unused federal net operating losses that were acquired in 2015. Due to Internal Revenue Code Section 382(g) limitations, the Company's use of the federal net operating losses acquired is limited to $3.9 million annually, which was determined using the applicable federal rate and the fair value of consideration paid for the acquisition at the acquisition date. The acquired federal net operating losses will expire between 2030 and 2034. The Company expects that it will be able to fully utilize the acquired allowable federal net operating losses prior to expiration, as the Company has a history of generating taxable income well in excess of the limitation. The Company continuously monitors and assesses the need for a valuation allowance on its deferred tax assets and, at December 31, 2019 and 2018 determined that no valuation allowance was necessary. As of December 31, 2019, the Company's federal and state income tax returns for the year ended December 31, 2018, 2017 and 2016 were open to audit by federal and state authorities.

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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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