Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Provision for Federal and State Income Taxes

The provision for federal and state income taxes included in the accompanying consolidated statements of income consists of the following:

	For the Years Ended December 31,
(Dollars in thousands)	2019		2018		2017
Current:
Federal	$	15,043	$	9,770	$	9,273
State	1,098		972		961
Deferred:
Federal	(1,068)		(862)		7,350
State	(739)		263		133
	$	14,334	$	10,143	$	17,717

Income Tax Provision Differences from Expected Statutory Provision

The provision for income taxes differs from the expected statutory provision as follows:

	For the Years Ended December 31,
	2019		2018		2017
Expected provision at statutory rate	21.0	%	21.0	%	35.0	%
Difference resulting from:
Tax exempt interest income, net of disallowance	(3.2)		(4.0)		(6.1)
Increase in value of bank owned life insurance assets	(0.8)		(1.1)		(2.2)
Stock-based compensation	—		(0.2)		(1.0)
State income taxes, net of federal benefits	0.4		1.6		1.2
Adjustment to deferred tax assets and liabilities for enacted changes in tax laws and rates	—		(0.5)		1.7
Changes in valuation allowance	0.2		0.1		0.5
Other	0.3		(0.2)		(0.4)
Effective tax rate	17.9	%	16.7	%	28.7	%

Components of Deferred Tax Assets and Liabilities

The assets and liabilities giving rise to the Corporation’s deferred tax assets and liabilities are as follows:

	At December 31,
(Dollars in thousands)	2019		2018
Deferred tax assets:
Allowance for loan and lease losses	$	7,680	$	6,410
Deferred compensation	1,834		1,734
Actuarial adjustments on retirement benefits*	4,868		4,592
State net operating losses	5,071		4,730
Other-than-temporary impairments on equity securities	151		148
Net unrealized holding losses on securities available-for-sale and swaps*	915		2,968
Lease liability	8,177		—
Other deferred tax assets	1,146		1,368
Gross deferred tax assets	29,842		21,950
Valuation allowance	(4,284)		(3,830)
Total deferred tax assets, net of valuation allowance	25,558		18,120
Deferred tax liabilities:
Mortgage servicing rights	1,404		1,463
Retirement plans	5,299		5,263
Deferred loan fees and costs	1,330		1,163
Acquisition-related fair value adjustments	1,515		1,605
Intangible assets	1,956		1,987
Accounting method change adjustment	768		1,154
Depreciation	1,137		937
Right of use asset	7,481		—
Other deferred tax liabilities	1,053		963
Total deferred tax liabilities	21,943		14,535
Net deferred tax assets	$	3,615	$	3,585

*Represents the amount of deferred taxes recorded in accumulated other comprehensive income.