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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2020
INCOME TAXES  
Scedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2020, 2019 and 2018 consisted of the following:

(dollars in thousands)

    

2020

    

2019

    

2018

Current federal

$

20,032

$

19,430

$

16,871

Deferred federal

 

(1,688)

 

(408)

 

707

Revalue deferred taxes due to tax reform

 

 

 

(408)

Current state

 

1,484

 

1,394

 

1,462

Deferred state

 

(289)

 

(78)

 

(99)

Total income tax expense

$

19,539

$

20,338

$

18,533

Schedule of Differences In Taxes From Continuing Operations

The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:

(dollars in thousands)

    

2020

    

2019

    

2018

Income taxes at statutory federal rate of 21%

$

21,814

$

22,551

$

20,778

Increase (decrease) in taxes resulting from:

 

 

 

  

Tax exempt income

 

(1,925)

 

(1,682)

 

(1,434)

Nondeductible expense

 

117

 

194

 

165

State income tax, net of federal tax effect

 

944

 

1,040

 

1,077

Captive insurance premium income

 

(227)

 

(310)

 

(292)

Tax credits

 

(540)

 

(548)

 

(412)

Bank owned life insurance

 

(595)

 

(573)

 

(303)

Long - term incentive plan

 

(58)

 

(421)

 

(641)

Revaluation deferred tax asset at 21% rate

 

 

 

(408)

Other

 

9

 

87

 

3

Total income tax expense

$

19,539

$

20,338

$

18,533

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2020 and 2019 consisted of the following:

(dollars in thousands)

    

2020

    

2019

Deferred tax assets:

 

  

 

  

Bad debts

$

15,634

$

12,945

Pension and deferred compensation liability

 

2,006

 

1,505

Nonaccrual loan interest

 

892

 

1,104

Long-term incentive plan

 

1,212

 

2,281

Lease liability

1,190

1,303

Other

 

745

 

510

 

21,679

 

19,648

Deferred tax liabilities:

 

 

  

Depreciation

 

4,718

 

4,741

Loan servicing rights

 

1,162

 

1,019

State taxes

 

524

 

464

Intangible assets

 

1,265

 

1,270

REIT spillover dividend

 

1,180

 

1,401

Prepaid expenses

 

948

 

795

Lease right of use

1,190

1,303

Other

 

442

 

382

 

11,429

 

11,375

Valuation allowance

 

 

Net deferred tax asset

$

10,250

$

8,273