Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

A summary of income tax expense included in the Consolidated Statements of Income follows:

(dollars in thousands)	For the year ended December 31,
	2019		2018		2017
Current tax expense:
Federal	$	15,171		13,897		26,510
State		2,359		1,756		2,221
Total current tax expense		17,530		15,653		28,731
Enactment of Federal Tax Reform		-		-		5,054
Deferred tax expense (benefit)		1,139		2,556		(183	)
Total income tax expense	$	18,669		18,209		33,602

Tax Effects of Temporary Differences

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018, are as follows:

	December 31,
(dollars in thousands)	2019			2018
	Deductible temporary differences			Deductible temporary differences

Benefits and deferred remuneration	$	(5,156	)	$	(5,204	)
Difference in reporting the allowance for loan losses, net		11,385			12,082
Other income or expense not yet reported for tax purposes		(314	)		(210	)
Depreciable assets		(2,347	)		(1,961	)
Net deferred tax asset at end of year		3,568			4,707
Net deferred tax asset at beginning of year		4,707			7,263
Deferred tax expense	$	1,139		$	2,556

Effective Income Tax Rate

The effective tax rates differ from the statutory federal income tax rate. The reasons for these differences are as follows:

	For the years ended December 31,
	2019			2018			2017
Statutory federal income tax rate		21.0	%		21.0			35.0
Increase/(decrease) in taxes resulting from:
Tax exempt income		-			(0.1	)		(0.1	)
State income tax, net of federal tax benefit		2.6			2.4			1.6
Enactment of Federal Tax Reform		-			-			6.6
Other items		0.8			(0.4	)		0.7
Effective income tax rate		24.4	%		22.9			43.8