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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Note 14 – Income Taxes The Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017 reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the Tax Act, we recorded a $14.6 million reduction in the value of our net deferred tax asset, which was recorded as additional income tax expense during 2017. We had net deferred tax assets (deferred tax assets in excess of deferred tax liabilities) of $33.0 million and $28.8 million at December 31, 2018 and 2017, respectively, which related primarily to our allowance for credit losses, and loan origination fees. Management believes it is more likely than not that all of the deferred tax assets will be realized. Federal and state income tax expense consists of the following for the years ended December 31:
(dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Current federal income tax expense |  | $ | 39,498 |  |  | $ | 59,019 |  |  | $ | 53,290 |
Current state income tax expense |  |  | 15,931 |  |  |  | 7,511 |  |  |  | 13,733 |
Total current tax expense |  |  | 55,429 |  |  |  | 66,530 |  |  |  | 67,023 |
Deferred federal income tax expense (benefit) |  |  | (2,634 | ) |  |  | 18,459 |  |  |  | (5,523 | )
Deferred state income tax expense (benefit) |  |  | (863 | ) |  |  | 515 |  |  |  | (105 | )
Total deferred tax expense (benefit) |  |  | (3,497 | ) |  |  | 18,974 |  |  |  | (5,628 | )
Total income tax expense |  | $ | 51,932 |  |  | $ | 85,504 |  |  | $ | 61,395 |
Temporary timing differences between the amounts reported in the financial statements and the tax bases of assets and liabilities result in deferred taxes. The table below summarizes significant components of our deferred tax assets and liabilities utilizing federal corporate income tax rates of 21% as of December 31, 2018 and 2017 and 35% as of December 31, 2016:
(dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Deferred tax assets |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 18,101 |  |  | $ | 16,568 |  |  | $ | 23,738 |
Deferred loan fees and costs |  |  | 6,733 |  |  |  | 6,741 |  |  |  | 10,728 |
Deferred rent |  |  | 1,026 |  |  |  | 1,009 |  |  |  | 1,483 |
Stock-based compensation |  |  | 1,722 |  |  |  | 847 |  |  |  | 3,037 |
Net operating loss |  |  | 2,003 |  |  |  | 2,032 |  |  |  | 2,695 |
Unrealized loss on securities available-for-sale |  |  | 2,756 |  |  |  | 1,312 |  |  |  | 1,303 |
Unrealized loss on interest rate swap derivatives |  |  | — |  |  |  | — |  |  |  | 284 |
SERP |  |  | 1,497 |  |  |  | 1,373 |  |  |  | 2,088 |
Premises and equipment |  |  | 795 |  |  |  | 33 |  |  |  | 3,838 |
Other |  |  | 287 |  |  |  | 35 |  |  |  | 477 |
Total deferred tax assets |  |  | 34,920 |  |  |  | 29,950 |  |  |  | 49,671 |
Unrealized gain on interest rate swap derivatives |  |  | (965 | ) |  |  | (578 | ) |  |  | — |
Excess servicing |  |  | (77 | ) |  |  | (99 | ) |  |  | (191 | )
Intangible assets |  |  | (223 | ) |  |  | (503 | ) |  |  | (1,260 | )
Other liabilities |  |  | (328 | ) |  |  | — |  |  |  | — |
Total deferred tax liabilities |  |  | (1,593 | ) |  |  | (1,180 | ) |  |  | (1,451 | )
Net deferred income tax amount |  | $ | 33,327 |  |  | $ | 28,770 |  |  | $ | 48,220 |
A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31 follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
Statutory federal income tax rate |  |  | 21.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
Increase (decrease) due to |  |  |  |  |  |  |  |  |  |  |  |
State income taxes |  |  | 5.83 |  |  |  | 3.41 |  |  |  | 5.57 |
Deferred tax adjustment related to Tax Act |  |  | — |  |  |  | 7.85 |  |  |  | — |
Tax exempt interest and dividend income |  |  | (1.13 | ) |  |  | (0.61 | ) |  |  | (0.98 | )
Stock-based compensation expense |  |  | 0.01 |  |  |  | 0.01 |  |  |  | 0.01 |
Other |  |  | (0.28 | ) |  |  | 0.38 |  |  |  | (1.01 | )
Effective tax rates |  |  | 25.43 | % |  |  | 46.04 | % |  |  | 38.59 | %
The Company is currently estimating that its effective tax rate for 2019 will be in the range of 25% to 26%. The net operating loss carry forward acquired in conjunction with the Fidelity acquisition is subject to annual limits under Section 382 of the Internal Revenue Code of $718 thousand and expires in 2027. The Company remains subject to examination for the years ending after December 31, 2014.

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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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