Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the three months and six months ended June 30, 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 June 30,														For the Six Months Ended June 30,
	2020						2019						2020				2019
(in thousands)	Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
Income tax based on statutory rate	$	2,994	21.0	%	$	2,917	21.0	%	$	2,118	21.0	%	$	4,844	21.0	%
Tax-exempt interest	(703)		(4.9)		(472)		(3.4)		(1,346)		(13.3)		(940)		(4.1)
Bank-owned life insurance	(133)		(0.9)		(99)		(0.7)		(242)		(2.4)		(181)		(0.8)
State income taxes, net of federal income tax benefit	736		5.2		744		5.4		545		5.4		1,231		5.3
Non-deductible acquisition expenses	—		—		136		1.0		—		—		162		0.7
General business credits	(388)		(2.7)		(14)		(0.1)		(771)		(7.6)		(28)		(0.1)
Other	40		0.2		6		—		44		0.4		20		0.1
Total income tax expense	$	2,546	17.9	%	$	3,218	23.2	%	$	348	3.5	%	$	5,108	22.1	%