Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense for the years ended December 31, 2018, 2017 and 2016, are as follows:



Dollars in thousands	2018			2017		2016
Current
Federal	$	6,400		$	5,092	$	7,738
State	973			496		627
	7,373			5,588		8,365
Deferred
Federal	(304		)	4,027		(353		)
State	(45		)	49		(4		)
	(349		)	4,076		(357		)
Total	$	7,024		$	9,664	$	8,008

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, 2018, 2017 and 2016 is as follows:



	2018					2017					2016
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	7,370		21		$	7,553		35		$	8,857		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(1,011		)	(3	)	(1,569		)	(7	)	(1,080		)	(4	)
Non-deductible merger-related expenses	—			—		—			—		108			—
Low-income housing and
rehabilitation tax credits	(286		)	(1	)	(247		)	(1	)	(55		)	—
Impact of enacted income tax rate change	—			—		3,461			16		—			—
State income taxes, net
of Federal income tax benefit	734			2		354			2		405			2
Other, net	217			1		112			—		(227		)	(1	)
Applicable income taxes	$	7,024		20		$	9,664		45		$	8,008		32

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, 2018 and 2017, are as follows:



Dollars in thousands	2018		2017
Deferred tax assets
Allowance for loan losses	$	2,921	$	2,753
Depreciation	405		523
Foreclosed properties	2,951		2,964
Deferred revenue	18		39
Deferred compensation	2,490		2,325
Other deferred costs and accrued expenses	645		551
Net unrealized loss on securities available for sale	265		—
Net unrealized loss on interest rate swaps	99		494
Capital loss carryforwards	166		166
Total	9,960		9,815
Deferred tax liabilities
Accretion on tax-exempt securities	29		—
Net unrealized gain on securities available for sale	—		916
Other post-retirement benefits	44		125
Purchase accounting adjustments and goodwill	2,253		2,357
Total	2,326		3,398
Net deferred tax assets	$	7,634	$	6,417