Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

Income tax expense consists of the following:

(dollars in thousands)	2019		2018			2017
Current:
Federal	$	8,074	$	6,616		$	12,097
State		5,614		3,451			3,773
		13,688		10,067			15,870
Deferred		1,503		(131	)		2,492
Deferred tax adjustment for change in tax rate		21		(479	)		2,591
Amortization of investment in affordable housing tax    credits		900		644			316
	$	16,112	$	10,101		$	21,269

Comparison of Federal Statutory Income Tax Rates to Effective Income Tax Rates

A comparison of the federal statutory income tax rates to the Company's effective income tax rates as of December 31 follows:

	2019						2018						2017
(dollars in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Statutory federal tax	$	11,617			21.0	%	$	9,703		21.0%			$	16,379			35.0	%
State franchise tax, net of federal benefit		5,322			9.6	%		3,488		7.5%				3,135			6.7	%
Tax-exempt income		(25	)		0.0	%		(27	)	-0.1%				(297	)		-0.6	%
Tax impact from change in tax rate		17			0.0	%		(479	)	-1.0%				2,591			5.5	%
Stock-based compensation		(27	)		0.0	%		(2,643	)	-5.7%				—			0.0	%
Other items, net		(792	)		-1.4	%		59		0.1%				(539	)		-1.2	%
Actual tax expense	$	16,112			29.2	%	$	10,101			21.8	%	$	21,269			45.4	%

Components of Net Deferred Tax Asset

The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying balance sheets as of December 31:

(dollars in thousands)	2019			2018
Deferred tax assets:
Pre-opening expenses	$	122		$	154
Allowance for loan losses		5,883			5,545
Stock-based compensation		1,346			1,419
Off balance sheet reserve		258			217
Operating loss carryforwards		1,253			1,688
Other real estate owned		37			10
Unrealized loss on AFS securities		—			600
Mark to market on held for sale mortgage loans		359			2,451
Other		1,594			1,220
		10,852			13,304
Deferred tax liabilities:
Depreciation		(282	)		(521	)
Unrealized gain on AFS securities		(106	)		—
Acquisition accounting fair value adjustments		(2,671	)		(2,067	)
Mortgage servicing rights		(3,745	)		(3,586	)
Other		(1,722	)		(2,488	)
		(8,526	)		(8,662	)
Net deferred tax assets	$	2,326		$	4,642