Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of principal components of income tax expense

	Year Ended December 31,
(Dollars in thousands)	2018		2017		2016
Current taxes	$	3,889	$	1,989	$	4,482
Deferred taxes		632		9,405		(23)
	$	4,521	$	11,394	$	4,459

Schedule of reconciliation of effective income tax rate to income tax provision

	Year Ended December 31,
		2018				2017				2016
(Dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Income tax at statutory rates	$	4,734	21.0	%	$	6,288	35.0	%	$	6,272	35.0	%
State income taxes		575	2.6			348	1.9			403	2.2
Tax-exempt interest income		(592)	(2.6)			(1,162)	(6.5)			(1,367)	(7.6)
Carrying cost of tax-exempt assets		18	0.1			32	0.2			36	0.2
Share based compensation		(103)	(0.5)			(284)	(1.6)			(255)	(1.4)
Change in value of bank-owned life insurance		(89)	(0.4)			(151)	(0.8)			(324)	(1.8)
Investments in qualified housing projects		(85)	(0.4)			(135)	(0.8)			(147)	(0.8)
Remeasurement of net deferred tax assets		—	—			6,643	37.0			—	—
Other		63	0.3			(185)	(1.0)			(159)	(0.9)
	$	4,521	20.1	%	$	11,394	63.4	%	$	4,459	24.9	%

Schedule of deferred tax assets and liabilities

	December 31,
(Dollars in thousands)	2018		2017
Deferred tax asset
Allowances for loan losses and OREO losses	$	8,567	$	9,004
Fair value adjustments related to business combinations		1,643		2,123
Nonqualified defined contribution plan		2,925		2,460
Share-based compensation		825		769
Reserve for indemnification losses		663		641
Interest on nonaccrual loans		346		475
Net unrealized loss on securities available for sale		365		—
Other		1,415		1,286
Deferred tax asset		16,749		16,758
Deferred tax liability
Goodwill and other intangible assets		(2,838)		(2,886)
Depreciation		(1,024)		(632)
Defined benefit plan		(620)		(934)
Cash flow hedges		(74)		(43)
Net unrealized gain on securities available for sale		—		(170)
Deferred tax liability		(4,556)		(4,665)
Net deferred tax asset	$	12,193	$	12,093