Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of Current and Deferred Components of Income Tax Expense (Benefit)

The current and deferred components of income tax expense (benefit) for the years ended December 31, are as follows:

	2019			2018			2017
(dollars in thousands)
Current expense:
Federal	$	2,548		$	2,637		$	3,628
State		697			697			412
Total current expense		3,245			3,334			4,040
Deferred (benefit) expense:
Federal		(1,660	)		(1,238	)		6,496
State		(367	)		(528	)		422
Valuation allowance reversal		(108	)		—			—
Total deferred (benefit) expense		(2,135	)		(1,766	)		6,918
Provision for income taxes	$	1,110		$	1,568		$	10,958

Income Tax Accounts Included in Other Assets

Income tax accounts included in other assets at December 31, are as follows:

	2019		2018
(dollars in thousands)
Current receivable	$	3,446	$	13,194
Deferred income tax asset, net		24,566		20,321
Total	$	28,012	$	33,515

Summary of Differences between Income Tax (Benefit) Expense at the Statutory Federal Income Tax Rate and Total Income Tax Expense

Differences between income tax expense (benefit) at the statutory federal income tax rate and total income tax expense are summarized as follows:

	2019			2018			2017
(dollars in thousands)
Federal income tax expense at statutory rates	$	8,570		$	7,934		$	11,308
State income tax, net of federal income tax benefit		261			134			550
Insurance income		(265	)		(176	)		(371	)
Effect of tax-exempt interest		(6,737	)		(6,510	)		(8,683	)
Net tax credit		(292	)		(349	)		(341	)
Valuation allowance reversal		(108	)		—			—
Sequestration (reversal) accrual		(438	)		438			—
Deferred tax remeasurement		—			—			8,448
Other		119			97			47
Total	$	1,110		$	1,568		$	10,958
Effective tax rate		2.72	%		4.15	%		32.95	%

Gross Deferred Income Tax Assets and Gross Deferred Income Tax Liabilities

The following table sets forth the Company’s gross deferred income tax assets and gross deferred income tax liabilities at December 31:

	2019			2018
(dollars in thousands)
Deferred income tax assets:
Allowance for loan losses	$	8,354		$	8,058
Deferred compensation		8,910			8,184
Pension and SERP liability		8,770			6,506
Operating lease liabilities		3,567			—
Unrealized losses on securities transferred to held-to-maturity		643			912
Depreciation		1,060			908
QZAB credit		812			—
Accrued bonus		708			717
Charitable contributions carryforward		276			389
Nonaccrual interest		115			109
Unrealized (gains) losses on securities available-for-sale		114			(2	)
Other		206			181
Gross deferred income tax asset		33,535			25,962
Valuation allowance		—			(108	)
Gross deferred income tax asset, net of valuation allowance		33,535			25,854
Deferred income tax liabilities:
Pension liability		(4,258	)		(4,436	)
Operating lease right-of-use assets		(3,520	)		—
Deferred origination costs		(516	)		(524	)
Prepaid expenses		(337	)		(228	)
Mortgage servicing rights		(338	)		(345	)
Gross deferred income tax liability		(8,969	)		(5,533	)
Deferred income tax asset net	$	24,566		$	20,321