Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31, 2020, 2019, and 2018 are as follows:


($ in thousands)		2020		2019	2018
Current	- Federal	$	27,799	19,920	19,188
	- State	3,909		2,499	3,187
Deferred	- Federal	(8,893)		1,572	1,658
	- State	(1,161)		239	156
Total		$	21,654	24,230	24,189

Schedule of Deferred Tax Assets and Liabilities

The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2020 and 2019 are presented below:


($ in thousands)	2020		2019
Deferred tax assets:
Allowance for loan losses	$	12,031	4,916
Excess book over tax pension plan cost	367		241
Deferred compensation	257		293
Federal & state net operating loss and tax credit carryforwards	282		376
Accruals, book versus tax	3,232		2,833
Pension liability adjustments	418		710
Foreclosed real estate	123		87
Basis differences in assets acquired in FDIC transactions	647		416
Equity compensation	661		370
Partnership investments	258		254
Leases	120		—
SBA servicing asset	358		400
All other	3		3
Gross deferred tax assets	18,757		10,899
Less: Valuation allowance	(14)		(40)
Net deferred tax assets	18,743		10,859
Deferred tax liabilities:
Loan fees	(1,011)		(2,428)

Depreciable basis of fixed assets	(4,809)		(4,995)
Amortizable basis of intangible assets	(7,965)		(7,844)
FHLB stock dividends	(236)		(472)
Trust preferred securities	(473)		(548)
Purchase accounting adjustments	—		(84)
Unrealized gain on securities available for sale	(4,699)		(2,239)
Gross deferred tax liabilities	(19,193)		(18,610)
Net deferred tax liability - included in other liabilities	$	(450)	(7,751)

Schedule of Effective Tax Rate Reconciliation

The following is a reconcilement of federal income tax expense at the statutory rate of 21% at December 31, 2020 and December 31, 2019 and December 31, 2018, to the income tax provision reported in the financial statements.


($ in thousands)	2020			2019		2018
Tax provision at statutory rate	$	21,657		24,418		23,830
Increase (decrease) in income taxes resulting from:
Tax-exempt interest income	(1,050)			(1,186)		(1,117)
Low income housing tax credits	(772)			(756)		(698)
Bank-owned life insurance income	(532)			(538)		(532)
Non-deductible interest expense	23			43		27
State income taxes, net of federal benefit	2,117			2,178		2,639
Change in valuation allowance	(20)			4		(8)
Impact of tax reform	—			(73)		—
Other, net	231			140		48
Total	$	21,654	21654000	$	24,230	$	24,189