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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Taxes  
Schedule of principal components of income tax expense

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Year Ended December 31, 

 

(Dollars in thousands)

    

2020

    

2019

    

2018

 

Current taxes

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$

7,612

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$

4,728

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$

3,889

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Deferred taxes

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(817)

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354

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632

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$

6,795

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$

5,082

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$

4,521

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

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Year Ended December 31, 

 

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2020

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2019

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2018

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(Dollars in thousands)

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Amount

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Percent

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Amount

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Percent

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Amount

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Percent

 

Income tax at statutory rates

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$

6,136

 

21.0

%  

$

5,026

 

21.0

%  

$

4,734

 

21.0

%

State income taxes

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1,449

 

5.0

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695

 

2.9

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575

 

2.6

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Tax-exempt interest income

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(493)

 

(1.7)

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(453)

 

(1.9)

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(574)

 

(2.5)

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Excess compensation

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328

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1.1

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—

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—

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—

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Change in tax law

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(326)

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(1.1)

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—

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—

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—

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—

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Income from bank-owned life insurance

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(107)

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(0.4)

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(149)

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(0.6)

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(89)

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(0.4)

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Investments in qualified housing projects

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(82)

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(0.3)

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(93)

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(0.4)

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(85)

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(0.4)

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Share based compensation

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(77)

 

(0.3)

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(126)

 

(0.5)

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(103)

 

(0.5)

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Merger related expenses

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29

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0.1

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96

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0.4

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—

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—

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Other

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(62)

 

(0.2)

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86

 

0.3

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63

 

0.3

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$

6,795

 

23.2

%  

$

5,082

 

21.2

%  

$

4,521

 

20.1

%

Schedule of deferred tax assets and liabilities

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December 31, 

 

(Dollars in thousands)

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2020

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2019

 

Deferred tax asset

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Allowances for loan losses and OREO losses

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$

9,743

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$

8,227

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Nonqualified defined contribution plan

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3,595

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3,247

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Lease liabilities

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1,906

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667

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Fair value adjustments related to business combinations

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1,716

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1,053

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Share-based compensation

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920

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863

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Reserve for indemnification losses

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879

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645

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Accrued expenses

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779

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426

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Cash flow hedges

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471

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24

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Other

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1,364

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1,359

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Deferred tax asset

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21,373

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16,511

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Deferred tax liability

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Goodwill and other intangible assets

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(3,164)

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(2,818)

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Right of use assets

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(1,868)

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(664)

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Depreciation

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(1,272)

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(972)

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Net unrealized gain on securities available for sale

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(1,169)

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(415)

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Defined benefit plan

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(345)

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(423)

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Deferred tax liability

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(7,818)

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(5,292)

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Net deferred tax asset

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$

13,555

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$

11,219

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