Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of income tax (benefit)

	2018		2017		2016
	(Dollars in thousands)
Currently payable tax:
Federal	$	9,187	$	12,948	$	13,373
State		5,416		4,653		4,748
Total currently payable		14,603		17,601		18,121
Deferred tax expense (benefit):
Federal		(1,133)		1,193		(1,029)
Due to enactment of Tax Reform		—		7,103		—
State		(146)		574		(504)
Total deferred tax		(1,279)		8,870		(1,533)
Income tax expense	$	13,324	$	26,471	$	16,588

Schedule of effective tax rate differs from the federal statutory rate

	2018		2017		2016
Statutory Federal income tax rate	21.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	8.5	%	6.8	%	6.6	%
Low income housing credits, net of investment losses	(0.8)	%	(0.5)	%	(0.3)	%
Increase in cash surrender value of life insurance	(0.5)	%	(1.2)	%	(1.4)	%
Stock option/restricted stock windfall tax benefit	(0.9)	%	(0.3)	%	N/A
Non-taxable interest income	(0.9)	%	(1.5)	%	(1.7)	%
Split-dollar term insurance	0.1	%	0.1	%	0.1	%
Due to enactment of Tax Reform	0.0	%	14.1	%	N/A
Other, net	0.9	%	0.1	%	(0.6)	%
Effective tax rate	27.4	%	52.6	%	37.7	%

Schedule of deferred tax assets and liabilities

	2018		2017
	(Dollars in thousands)
Deferred tax assets:
Defined postretirement benefit obligation	$	7,877	$	8,385
Allowance for loan losses		7,697		5,671
Federal net operating loss carryforwards		5,093		650
Securities available-for-sale		2,184		400
California net operating loss carryforwards		2,128		394
Accrued expenses		1,939		910
Stock compensation		1,244		1,272
State income taxes		1,117		975
Premises and equipment		642		649
Split-dollar life insurance benefit plan		80		76
Tax credit carryforwards		71		70
Nonaccrual interest		55		76
Other		716		365
Total deferred tax assets		30,843		19,893
Deferred tax liabilities:
Intangible liabilities		(1,671)		(1,357)
Loan fees		(1,089)		(1,079)
Prepaid expenses		(554)		(533)
I/O strips		(163)		(406)
FHLB stock		(174)		(171)
Other		(103)		(100)
Total deferred tax liabilities		(3,754)		(3,646)
Net deferred tax assets	$	27,089	$	16,247

Summary of carrying amount of low income tax housing investment

	December 31,		December 31,
	2018		2017
	(Dollars in thousands)
Low income housing investments	$	3,172	$	3,411
Future commitments	$	273	$	302