Income Taxes

3 Months Ended

Mar. 31, 2020

Income tax expense for the three months ended March 31, 2020 and 2019 varied from the amount computed by applying the maximum effective federal income tax rate of 21%, to the income before income taxes, because of the following items:


	For the Three Months Ended March 31,
	2020						2019
(in thousands)	Amount		% of Pretax Income		Amount		% of Pretax Income
Income tax based on statutory rate	$	(876)	(21.0)	%	$	1,927	21.0	%
Tax-exempt interest	(643)		(15.4)		(468)		(5.1)
Bank-owned life insurance	(109)		(2.6)		(82)		(0.9)
State income taxes, net of federal income tax benefit	(191)		(4.6)		487		5.3
Non-deductible acquisition expenses	—		—		26		0.3
General business credits	(383)		(9.2)		(14)		(0.2)
Other	4		—		14		0.2
Total income tax expense (benefit)	$	(2,198)	(52.8)	%	$	1,890	20.6	%