Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Summary of Income Tax Expense

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

(dollars in thousands)	For the year ended December 31,
	2020			2019		2018
Current tax expense:
Federal	$	15,662			15,171		13,897
State		2,399			2,359		1,756
Total current tax expense		18,061			17,530		15,653
Deferred tax (benefit) expense		(1,067	)		1,139		2,556
Total income tax expense	$	16,994			18,669		18,209

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, 2020 and 2019, are as follows:

	December 31,
(dollars in thousands)	2020			2019
	Deductible temporary differences			Deductible temporary differences
Benefits and deferred remuneration	$	(6,178	)	$	(5,156	)
Difference in reporting the allowance for loan losses, net		12,820			11,385
Other income or expense not yet reported for tax purposes		534			(314	)
Depreciable assets		(2,541	)		(2,347	)
Net deferred tax asset at end of year		4,635			3,568
Net deferred tax asset at beginning of year		3,568			4,707
Deferred tax (benefit) expense	$	(1,067	)	$	1,139

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,
	2020			2019		2018
Statutory federal income tax rate		21.0	%		21.0		21.0
Increase/(decrease) in taxes resulting from:
Tax exempt income		-			-		(0.1	)
State income tax, net of federal tax benefit		2.4			2.6		2.4
Other items		1.1			0.8		(0.4	)
Effective income tax rate		24.5	%		24.4		22.9