Income Taxes Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

Our income tax expense for the three months ended September 30, 2020 and September 30, 2019 totaled $2.6 million and $1.8 million, respectively. For the nine months ended September 30, 2020 and September 30, 2019 our income tax expense totaled $5.3 million and $5.3 million. Our effective tax rate (income tax expense as a percentage of income before taxes) for the three months ended September 30, 2020 and 2019 was 21.2% and 18.4%, respectively, and for the nine months ended September 30, 2020 and 2019 waa 20.1% and 18.2%, respectively. A reconciliation between the statutory income tax rate and our effective income tax rate for the three and nine months ended September 30, 2020 and 2019 is as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020		2019
Dollars in thousands	Percent		Percent		Percent		Percent
Applicable statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) in rate resulting from:
Tax-exempt interest and dividends, net	(1.9)	%	(1.6)	%	(2.2)	%	(2.0)	%
State income taxes, net of Federal income tax benefit	1.9	%	1.9	%	1.6	%	1.8	%
Low-income housing and rehabilitation tax credits	(0.1)	%	(0.5)	%	(0.6)	%	(0.6)	%
Other, net	0.3	%	(2.4)	%	0.3	%	(2.0)	%
Effective income tax rate	21.2	%	18.4	%	20.1	%	18.2	%

The components of applicable income tax expense for the three and nine months ended September 30, 2020 and 2019 are as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Dollars in thousands	2020		2019		2020		2019
Current
Federal	$	2,697	$	1,666	$	7,689	$	4,913
State	372		246		1,072		716
	3,069		1,912		8,761		5,629
Deferred
Federal	(416)		(88)		(3,025)		(294)
State	(59)		(12)		(434)		(42)
	(475)		(100)		(3,459)		(336)
Total	$	2,594	$	1,812	$	5,302	$	5,293