Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense for the years ended December 31, 2017, 2016 and 2015, are as follows:



Dollars in thousands	2017		2016			2015
Current
Federal	$	5,092	$	7,738		$	6,219
State	496		627			484
	5,588		8,365			6,703
Deferred
Federal	4,027		(353		)	165
State	49		(4		)	25
	4,076		(357		)	190
Total	$	9,664	$	8,008		$	6,893

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the amount of reported income tax expense and the amount computed by multiplying the statutory income tax rates by book pretax income for the years ended December 31, 2017, 2016 and 2015 is as follows:



	2017					2016					2015
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	7,553		35		$	8,857		35		$	8,048		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(1,569		)	(7	)	(1,080		)	(4	)	(1,047		)	(4	)
Non-deductible merger-related expenses	—			—		108			—		—			—
Low-income housing and
rehabilitation tax credits	(247		)	(1	)	(55		)	—		—			—
Impact of enacted income tax rate change	3,461			16		—			—		—			—
State income taxes, net
of Federal income tax benefit	354			2		405			2		331			1
Other, net	112			—		(227		)	(1	)	(439		)	(2	)
Applicable income taxes	$	9,664		45		$	8,008		32		$	6,893		30

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which give rise to our deferred tax assets and liabilities as of December 31, 2017 and 2016, are as follows:



Dollars in thousands	2017		2016
Deferred tax assets
Allowance for loan losses	$	2,753	$	4,320
Depreciation	523		97
Foreclosed properties	2,964		4,184
Deferred revenue	39		38
Deferred compensation	2,325		3,118
Other deferred costs and accrued expenses	551		440
Other-than-temporarily impaired securities	—		257
Net unrealized loss on securities available for sale	—		208
Net unrealized loss on interest rate swaps	494		1,706
Capital loss carryforwards	166		—
Total	9,815		14,368
Deferred tax liabilities
Net unrealized gain on securities available for sale	916		—
Other post-retirement benefits	125		—
Purchase accounting adjustments and goodwill	2,357		701
Total	3,398		701
Net deferred tax assets	$	6,417	$	13,667