Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) for the years ended December 31 is comprised of:

(dollars in thousands)	2018			2017			2016
Federal
Current	$	13,616		$	32,282		$	24,521
Deferred	3,517			13,980			665
Total Federal	17,133			46,262			25,186
State
Current	720			323			248
Deferred	(8		)	(148		)	(129		)
Total State	712			175			119
Total Federal and State	$	17,845		$	46,437		$	25,305

Schedule of Statutory to Effective Tax Rate Reconciliation

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:

	2018		2017		2016
Statutory tax rate	21.0	%	35.0	%	35.0	%
Low income housing tax credits	(2.5	)%	(2.9	)%	(3.8	)%
Tax-exempt interest	(2.1	)%	(4.0	)%	(4.4	)%
Bank owned life insurance	(0.4	)%	(0.8	)%	(0.8	)%
Gain on sale of a majority interest of insurance business	0.7	%	—	%	—	%
Other	0.3	%	0.3	%	0.2	%
Impact of the Tax Act	(2.5	)%	11.3	%	—	%
Effective Tax Rate	14.5	%	38.9	%	26.2	%

Schedule of Significant Components of Temporary Differences

Significant components of our temporary differences were as follows at December 31:

(dollars in thousands)	2018			2017
Deferred Tax Assets:
Allowance for loan losses	$	13,463		$	12,440
Net unrealized holding losses on securities available-for-sale	1,091			—
Other employee benefits	2,712			3,095
Low income housing partnerships	3,249			3,213
Net adjustment to funded status of pension	5,173			6,481
Impairment of securities	8			300
State net operating loss carryforwards	4,573			3,598
Other	2,848			2,355
Gross Deferred Tax Assets	33,117			31,482
Less: Valuation allowance	(4,573		)	(3,598		)
Total Deferred Tax Assets	28,544			27,884
Deferred Tax Liabilities:
Net unrealized holding gains on securities available-for-sale	—			(638		)
Prepaid pension	(6,164		)	(1,749		)
Deferred loan income	(3,219		)	(2,937		)
Purchase accounting adjustments	(100		)	(100		)
Depreciation on premises and equipment	(477		)	(480		)
Other	(1,375		)	(1,401		)
Total Deferred Tax liabilities	(11,335		)	(7,305		)
Net Deferred Tax Asset	$	17,209		$	20,579

Schedule of Reconciliation of Change in Federal and State Gross Unrecognized Tax Benefits

The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31:

(dollars in thousands)	2018			2017			2016
Balance at beginning of year	$	909		$	804		$	1,102
Prior period tax positions
Increase	—			—			—
Decrease	(251		)	(37		)	(449		)
Current period tax positions	110			142			151
Reductions for statute of limitations expirations	—			—			—
Balance at End of Year	$	768		$	909		$	804
Amount That Would Impact the Effective Tax Rate if Recognized	$	607		$	770		$	610