Entity information:

NOTE 16 – Income Taxes

The components of income tax expense were as follows:

  
 For the years ended December 31, 
(dollars in thousands)       2017     2016     2015
Current income taxes:
Federal$7,1396,4296,184
State573548441
Total current tax expense7,7126,9776,625
Deferred income tax expense (benefit)2,904356(1,256)
Income tax expense$10,6167,3335,369

The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate:

   
For the years ended December 31,
(dollars in thousands)     2017     2016     2015
Tax expense at statutory rate$8,2817,1295,438
Effect of state income taxes, net of federal benefit372356287
Exempt income(146)(162)(151)
Effect of change in federal tax rate2,441--
Other(332)10(205)
Income tax expense$10,6167,3335,369

Income tax expense for the year ended December 31, 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Act, which was enacted on December 22, 2017. As a result of the new law, we recognized a provisional net tax expense totaling $2.4 million, as noted in the table above.

As a result of the Tax Act, deferred taxes as of December 31, 2017 are based on the newly enacted U.S. statutory federal income tax rate of 21%, while deferred taxes as of December 31, 2016 are based on the previous federal income tax rate of 35%. The components of the deferred tax assets and liabilities are as follows:

  
December 31,
(dollars in thousands)                      2017       2016
Deferred tax assets:
Allowance for loan losses$3,2605,199
Unrealized loss on securities available for sale121260
Net deferred loan fees480691
Deferred compensation1,1241,597
Sale of real estate owned104262
Accrued expenses16401
Other136250
 5,2418,660
Deferred tax liabilities:
Property and equipment1,2081,467
Hedging transactions88-
Other163368
1,4591,835
Net deferred tax asset$3,7826,825

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions.