Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of income tax (benefit)

	2020		2019		2018
	(Dollars in thousands)
Currently payable tax:
Federal	$	9,630	$	7,631	$	9,187
State		5,828		4,689		5,416
Total currently payable		15,458		12,320		14,603
Deferred tax expense (benefit):
Federal		(932)		2,200		(1,133)
State		(757)		1,331		(146)
Total deferred tax		(1,689)		3,531		(1,279)
Income tax expense	$	13,769	$	15,851	$	13,324

Schedule of effective tax rate differs from the federal statutory rate

	2020		2019		2018
Statutory Federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	8.2	%	8.5	%	8.5	%
Low income housing credits, net of investment losses	(0.5)	%	(0.5)	%	(0.8)	%
Increase in cash surrender value of life insurance	(0.8)	%	(0.5)	%	(0.5)	%
Stock option/restricted stock windfall tax benefit	0.6	%	(0.3)	%	(0.9)	%
Non-taxable interest income	(0.8)	%	(0.8)	%	(0.9)	%
Split-dollar term insurance	0.1	%	0.1	%	0.1	%
Merger cost	0.0	%	0.5	%	0.5	%
Other, net	0.3	%	0.1	%	0.4	%
Effective tax rate	28.1	%	28.1	%	27.4	%

Schedule of deferred tax assets and liabilities

	2020		2019
	(Dollars in thousands)
Deferred tax assets:
Allowance for credit losses on loans	$	12,827	$	7,231
Lease accounting		10,537		1,647
Defined postretirement benefit obligation		10,419		9,901
Accrued expenses		2,896		2,562
Federal net operating loss carryforwards		2,846		3,662
Stock compensation		1,894		1,636
State income taxes		1,142		954
California net operating loss carryforwards		1,106		1,489
Premises and equipment		459		695
Nonaccrual interest		101		61
Split-dollar life insurance benefit plan		80		75
Tax credit carryforwards		57		57
Other		469		654
Total deferred tax assets		44,833		30,624
Deferred tax liabilities:
Lease accounting		(10,537)		(1,647)
Loan fees		(1,820)		(1,842)
Securities available-for-sale		(1,764)		(772)
Intangible liabilities		(1,388)		(1,321)
Prepaid expenses		(689)		(289)
FHLB stock		(166)		(177)
I/O strips		(87)		(144)
Other		(161)		(130)
Total deferred tax liabilities		(16,612)		(6,322)
Net deferred tax assets	$	28,221	$	24,302

Summary of carrying amount of low income tax housing investment

	December 31,		December 31,
	2020		2019
	(Dollars in thousands)
Low income housing investments	$	5,246	$	6,126
Future commitments	$	596	$	625