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Income Taxes
 12 Months Ended
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)202020192018
Current federal income tax expense$40,201 $39,756 $39,498 
Current state income tax expense12,059 14,153 15,931 
Total current tax expense52,260 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)20202019
Deferred tax assets    
Allowance for credit losses$28,118 $19,144 
Deferred loan fees and costs8,104 6,354 
Leases7,183 7,790 
Stock-based compensation828 674 
Net operating loss6,896 6,184 
Unrealized loss on interest rate swap derivatives132 53 
SERP2,495 1,541 
Premises and equipment879 914 
Other assets1,982 816 
Valuation allowances(5,845)(4,899)
Total deferred tax assets50,772 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:
202020192018
Statutory federal income tax rate21.00 %21.00 %21.00 %
Increase (decrease) due to:
State income taxes5.04 %5.49 %5.83 %
Tax exempt interest and dividend income(0.75)%(0.69)%(1.13)%
Stock-based compensation expense0.25 %1.15 %0.01 %
Other(0.63)%0.46 %(0.28)%
Effective tax rate24.91 %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.