Entity information:
Note 18. Income Taxes
 
On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA") was signed into law. The TCJA makes broad and complex changes to the U.S. tax code that affected income tax expense in 2017. The TCJA reduces the U.S. federal corporate income tax rate from 35% to 21% beginning January 1, 2018 and also establishes new tax laws that will affect 2018.
ASC 740 requires a company to record the effects of a tax law change in the period of enactment, however, shortly after the enactment of the TCJA, the SEC staff issued SAB 118, which allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year.
The following is a summary of the provision for income taxes included in the Consolidated Statements of Income:

 
December 31,
 
(in thousands)
2017
 
2016
 
2015
 
Current
 
$
4,638
  
$
8,168
  
$
7,347
 
Deferred
  
2,761
   
(1,004
)
  
(384
)
Total
 
$
7,399
  
$
7,164
  
$
6,963
 

The difference between income taxes computed by applying the statutory federal income tax rate and the provision for income taxes in the financial statements is reconciled as follows:

 
 
December 31,
 
(in thousands except for %)
 
2017
  
2016
  
2015
 
Statutory tax rate
  
35.0
%
  
35.0
%
  
35.0
%
 
            
Federal income taxes at statutory rate
 
$
6,703
  
$
7,440
  
$
7,514
 
Tax exempt municipal income
  
(254
)
  
(283
)
  
(436
)
Other(1)
  
950
   
7
   
(115
)
Total
 
$
7,399
  
$
7,164
  
$
6,963
 
 
(1) Included in other for the year ended December 31, 2017 is $0.9 million related to the estimated net impact from the remeasurement of deferred tax assets and liabilities as a result of the passage of the Tax Cuts and Jobs Act in December 2017.
 
Deferred taxes are recorded based upon differences between the financial statement and tax basis of assets and liabilities, and available tax credit carry forwards. Temporary differences between the financial statement and tax values of assets and liabilities give rise to deferred taxes. The significant components of deferred taxes classified in First Guaranty's Consolidated Balance Sheets at December 31, 2017 and 2016 are as follows:

 
 
December 31,
 
(in thousands)
 
2017
  
2016
 
Deferred tax assets:
      
Allowance for loan losses
 
$
1,804
  
$
3,890
 
Other real estate owned
  
25
   
60
 
Unrealized losses on available for sale securities
  
495
   
2,060
 
Net operating loss  1,463   - 
Other
  
546
   
449
 
Gross deferred tax assets
  
4,333
   
6,459
 
 
        
Deferred tax liabilities:
        
Depreciation and amortization
  
(1,688
)
  
(1,480
)
Core deposit intangibles
  
(662
)
  
(342
)
Unrealized gains on available for sale securities
  
-
   
-
 
Other
  
(566
)
  
(376
)
Gross deferred tax liabilities
  
(2,916
)
  
(2,198
)
 
        
Net deferred tax assets
 
$
1,417
  
$
4,261
 

Net operating loss carryforwards for income tax purposes were $7.0 million as of December 31, 2017 as compared to zero in 2016. The carryforwards were acquired in 2017 in the Premier acquisition and expire from 2027 to 2034, and will be utilized subject to annual Internal Revenue Code Section 382 limitations.

ASC 740-10, Income Taxes, clarifies the accounting for uncertainty in income taxes and prescribes a recognition threshold and measurement attribute for the consolidated financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. First Guaranty does not believe it has any unrecognized tax benefits included in its consolidated financial statements. First Guaranty has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. First Guaranty recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in noninterest expense. During the years ended December 31, 2017, 2016 and 2015, First Guaranty did not recognize any interest or penalties in its consolidated financial statements, nor has it recorded an accrued liability for interest or penalty payments.