Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

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


Dollars in thousands	2020		2019		2018
Current
Federal	$	10,189	$	6,676	$	6,400
State	1,440		938		973
	11,629		7,614		7,373
Deferred
Federal	(3,673)		88		(304)
State	(528)		15		(45)
	(4,201)		103		(349)
Total	$	7,428	$	7,717	$	7,024

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, 2020, 2019 and 2018 is as follows:


	2020			2019			2018
Dollars in thousands	Amount		Percent	Amount		Percent	Amount		Percent
Computed tax at applicable statutory rate	$	8,138	21	$	8,313	21	$	7,370	21
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(788)		(2)	(728)		(2)	(1,011)		(3)
Non-deductible merger-related expenses	29		—	—		—	—		—
Low-income housing and rehabilitation tax credits	(248)		(1)	(177)		—	(286)		(1)

State income taxes, net
of Federal income tax benefit	720		2	753		2	734		2
Other, net	(423)		(1)	(444)		(1)	217		1
Applicable income taxes	$	7,428	19	$	7,717	20	$	7,024	20

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, 2020 and 2019, are as follows:


Dollars in thousands	2020		2019
Deferred tax assets
Allowance for credit losses	$	8,553	$	3,017
Depreciation	—		29
Foreclosed properties	2,703		2,659
Deferred compensation	4,384		3,296
Other deferred costs and accrued expenses	1,053		534


Net unrealized loss on derivative financial instruments	357		163

Total	17,050		9,698
Deferred tax liabilities
Depreciation	288		—
Accretion on tax-exempt securities	19		62
Net unrealized gain on debt securities available for sale	2,153		994

Other post-retirement benefits	—		15
Acquisition accounting adjustments and goodwill	2,241		2,099
Total	4,701		3,170
Net deferred tax assets	$	12,349	$	6,528