Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense for the years ended December 31, 2019, 2018 and 2017, are as follows:



Dollars in thousands	2019		2018			2017
Current
Federal	$	6,676	$	6,400		$	5,092
State	938		973			496
	7,614		7,373			5,588
Deferred
Federal	88		(304		)	4,027
State	15		(45		)	49
	103		(349		)	4,076
Total	$	7,717	$	7,024		$	9,664

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, 2019, 2018 and 2017 is as follows:



	2019					2018					2017
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	8,313		21		$	7,370		21		$	7,553		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(728		)	(2	)	(1,011		)	(3	)	(1,569		)	(7	)
Non-deductible merger-related expenses	—			—		—			—		—			—
Low-income housing and rehabilitation tax credits	(177		)	—		(286		)	(1	)	(247		)	(1	)
Impact of enacted income tax rate change	—			—		—			—		3,461			16
State income taxes, net
of Federal income tax benefit	753			2		734			2		354			2
Other, net	(444		)	(1	)	217			1		112			—
Applicable income taxes	$	7,717		20		$	7,024		20		$	9,664		45

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, 2019 and 2018, are as follows:



Dollars in thousands	2019		2018
Deferred tax assets
Allowance for loan losses	$	3,017	$	2,921
Depreciation	29		405
Foreclosed properties	2,659		2,951
Deferred revenue	—		18
Deferred compensation	3,296		2,490
Other deferred costs and accrued expenses	534		645
Net unrealized loss on securities available for sale	—		265
Net unrealized loss on interest rate swaps	163		99
Capital loss carryforwards	—		166
Total	9,698		9,960
Deferred tax liabilities
Accretion on tax-exempt securities	62		29
Net unrealized gain on securities available for sale	994		—
Other post-retirement benefits	15		44
Purchase accounting adjustments and goodwill	2,099		2,253
Total	3,170		2,326
Net deferred tax assets	$	6,528	$	7,634