Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of income tax (benefit)

	2019		2018		2017
	(Dollars in thousands)
Currently payable tax:
Federal	$	7,631	$	9,187	$	12,948
State		4,689		5,416		4,653
Total currently payable		12,320		14,603		17,601
Deferred tax expense (benefit):
Federal		2,200		(1,133)		1,193
Due to enactment of Tax Reform		—		—		7,103
State		1,331		(146)		574
Total deferred tax		3,531		(1,279)		8,870
Income tax expense	$	15,851	$	13,324	$	26,471

Schedule of effective tax rate differs from the federal statutory rate

	2019		2018		2017
Statutory Federal income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal tax benefit	8.5	%	8.5	%	6.8	%
Low income housing credits, net of investment losses	(0.5)	%	(0.8)	%	(0.5)	%
Increase in cash surrender value of life insurance	(0.5)	%	(0.5)	%	(1.2)	%
Stock option/restricted stock windfall tax benefit	(0.3)	%	(0.9)	%	(0.3)	%
Non-taxable interest income	(0.8)	%	(0.9)	%	(1.5)	%
Split-dollar term insurance	0.1	%	0.1	%	0.1	%
Merger cost	0.5	%	0.5	%	—	%
Due to enactment of Tax Reform	—	%	—	%	14.1	%
Other, net	0.1	%	0.4	%	0.1	%
Effective tax rate	28.1	%	27.4	%	52.6	%

Schedule of deferred tax assets and liabilities

	2019		2018
	(Dollars in thousands)
Deferred tax assets:
Defined postretirement benefit obligation	$	9,901	$	7,877
Allowance for loan losses		7,231		7,697
Federal net operating loss carryforwards		3,662		5,093
Accrued expenses		2,562		1,939
Lease accounting		1,647		—
Stock compensation		1,636		1,244
California net operating loss carryforwards		1,489		2,128
State income taxes		954		1,117
Premises and equipment		695		642
Split-dollar life insurance benefit plan		75		80
Nonaccrual interest		61		55
Tax credit carryforwards		57		71
Securities available-for-sale		—		2,184
Other		654		716
Total deferred tax assets		30,624		30,843
Deferred tax liabilities:
Intangible liabilities		(1,321)		(1,671)
Loan fees		(1,842)		(1,089)
Prepaid expenses		(289)		(554)
Securities available-for-sale		(772)		—
Lease accounting		(1,647)		—
I/O strips		(144)		(163)
FHLB stock		(177)		(174)
Other		(130)		(103)
Total deferred tax liabilities		(6,322)		(3,754)
Net deferred tax assets	$	24,302	$	27,089

Summary of carrying amount of low income tax housing investment

	December 31,		December 31,
	2019		2018
	(Dollars in thousands)
Low income housing investments	$	6,126	$	3,172
Future commitments	$	625	$	273