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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Federal and state income tax expense consists of the following for the years ended December 31:
(dollars in thousands) |  | 2020 |  | 2019 |  | 2018
Current federal income tax expense |  | $ | 40,201 |  |  | $ | 39,756 |  |  | $ | 39,498 |
Current state income tax expense |  | 12,059 |  |  | 14,153 |  |  | 15,931 |
Total current tax expense |  | 52,260 |  |  | 53,909 |  |  | 55,429 |
Deferred federal income tax expense (benefit) |  | (5,212) |  |  | 78 |  |  | (2,634) |
Deferred state income tax benefit |  | (3,120) |  |  | (139) |  |  | (863) |
Total deferred tax benefit |  | (8,332) |  |  | (61) |  |  | (3,497) |
Total income tax expense |  | $ | 43,928 |  |  | $ | 53,848 |  |  | $ | 51,932 |
We had net deferred tax assets (deferred tax assets in excess of deferred tax liabilities) of $38.6 million and $29.8 million for the years ended at December 31, 2020 and 2019, 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. Temporary timing differences between the amounts reported in the Consolidated 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 as of December 31, 2020 and 2019:
(dollars in thousands) |  | 2020 |  | 2019
Deferred tax assets |  |  |  |
Allowance for credit losses |  | $ | 28,118 |  |  | $ | 19,144 |
Deferred loan fees and costs |  | 8,104 |  |  | 6,354 |
Leases |  | 7,183 |  |  | 7,790 |
Stock-based compensation |  | 828 |  |  | 674 |
Net operating loss |  | 6,896 |  |  | 6,184 |
Unrealized loss on interest rate swap derivatives |  | 132 |  |  | 53 |
SERP |  | 2,495 |  |  | 1,541 |
Premises and equipment |  | 879 |  |  | 914 |
Other assets |  | 1,982 |  |  | 816 |
Valuation allowances |  | (5,845) |  |  | (4,899) |
Total deferred tax assets |  | 50,772 |  |  | 38,571 |
Deferred tax liabilities |  |  |  |
Unrealized net gain on securities available-for-sale |  | (5,519) |  |  | (1,081) |
Excess servicing |  | (206) |  |  | (51) |
Intangible assets |  | — |  |  | (9) |
Leases |  | (6,470) |  |  | (7,117) |
Other liabilities |  | (6) |  |  | (509) |
Total deferred tax liabilities |  | (12,201) |  |  | (8,767) |
Net deferred income tax assets |  | $ | 38,571 |  |  | $ | 29,804 |
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. As of December 31, 2020, The Company has concluded, based on the weight of available positive and negative evidence, a portion of it’s state net operating loss deferred tax asset is not more likely than not to be realized and accordingly, a valuation allowance of $5.8 million and $4.9 million is carried as of December 31, 2020 and 2019, respectively. A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31 2020, 2019, and 2018 follows:
| 2020 |  | 2019 |  | 2018
Statutory federal income tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Increase (decrease) due to: |  |  |  |  |
State income taxes | 5.04 | % |  | 5.49 | % |  | 5.83 | %
Tax exempt interest and dividend income | (0.75) | % |  | (0.69) | % |  | (1.13) | %
Stock-based compensation expense | 0.25 | % |  | 1.15 | % |  | 0.01 | %
Other | (0.63) | % |  | 0.46 | % |  | (0.28) | %
Effective tax rate | 24.91 | % |  | 27.41 | % |  | 25.43 | %
The Company remains subject to examination by taxing authorities for the years ending after December 31, 2016. Management has identified no uncertain tax positions at December 31, 2020.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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