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Income Taxes
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, as well as in the majority of states and in Canada. As of September 30, 2020, the Company has a net deferred tax liability of $13.2 million, which includes $2.0 million of state net operating loss ("NOL") carry-forwards, expiring in tax years 2029-2031. The Company believes that it is more likely than not that the benefit from only certain state NOL carry-forwards will not be realized and therefore has provided a valuation allowance of $1.1 million against the deferred tax assets relating to these NOL carry-forwards. The Company had gross unrecognized tax benefits of $4.3 million as of September 30, 2020. If recognized, the unrecognized tax benefit would reduce the 2020 annual effective tax rate by 0.27%.

The Company's consolidated effective tax rate as a percentage of pre-tax income (loss) for the three and nine months ended September 30, 2020 was 21.3% and (4.4)%, respectively, as compared to 23.6% and 24.5% for the three and nine months ended September 30, 2019. The effective tax rate decreased from the prior year primarily due to the impairment of non-deductible goodwill during the nine months ended September 30, 2020. Additionally, the effective tax rates differed from the statutory rate principally because of state taxes, non-taxable income arising from bank owned life insurance, income on tax-exempt investment securities, non-deductible FDIC premiums and tax credits arising from low-income housing investments.