Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Income Tax Contingencies [Table Text Block]

The following table provides a reconciliation of uncertain tax positions at December 31:


(Dollars in thousands)	2020		2019
Uncertain tax positions, beginning of year	$	250	$	423
Gross increase based on tax positions related to current year	$	12	$	39
Gross increase for tax position taken during prior years	$	—	$	8

Gross decrease due to the statute of limitations	$	(113)	$	(220)
Uncertain tax positions, end of year	$	149	$	250

Schedule of Effective Income Tax Rate Reconciliation

The reported income tax expense and effective tax rate in the Consolidated Statements of Income differ from the amounts computed by applying the statutory federal corporate income tax rate as follows for the years ended December 31:


(Dollars in thousands)	2020				2019				2018
	Amount		Rate		Amount		Rate		Amount		Rate
Income tax computed at statutory federal corporate income tax rate	$	8,956	21.0	%	$	13,725	21.0	%	$	11,505	21.0	%
Differences in rate resulting from:
Tax-exempt interest income	(668)		(1.6)	%	(659)		(1.0)	%	(554)		(1.0)	%
Investments in tax credit funds	(415)		(1.0)	%	(530)		(0.8)	%	(125)		(0.2)	%
Bank owned life insurance	(415)		(1.0)	%	(510)		(0.8)	%	(393)		(0.7)	%
Stock awards	(5)		—	%	(135)		(0.2)	%	(332)		(0.6)	%
Captive insurance benefit	(412)		(1.0)	%	—		—	%	—		—	%
Release of valuation allowance	—		—	%	—		—	%	(805)		(1.5)	%
TCJ Act	—		—	%	—		—	%	(705)		(1.3)	%
Other, net	838		2.1	%	(228)		(0.4)	%	95		0.2	%
Income tax expense	$	7,879	18.5	%	$	11,663	17.8	%	$	8,686	15.9	%

Schedule of Components of Income Tax Expense (Benefit)

Peoples' reported income tax expense consisted of the following for the years ended December 31:


(Dollars in thousands)	2020		2019		2018
Current income tax expense	$	15,980	$	11,554	$	8,995
Deferred income tax (benefit) expense	(8,101)		109		(309)
Income tax expense	$	7,879	$	11,663	$	8,686

Schedule of Deferred Tax Assets and Liabilities

The significant components of Peoples' deferred tax assets and deferred tax liabilities consisted of the following at December 31:


(Dollars in thousands)	2020		2019
Deferred tax assets:
Allowance for credit losses	$	13,819	$	9,714

Accrued employee benefits	2,706		2,039
Lease obligation	1,423		1,640
Tax credit investments	1,799		1,130


Derivative instruments	2,494		736
Other	5		14


Total deferred tax assets	$	22,246	$	15,273
Deferred tax liabilities:
Purchase accounting adjustments	$	4,522	$	5,970
Bank premises and equipment (a)	3,274		3,300
Deferred loan income	2,174		3,120
Lease right-of-use assets	1,370		1,597
Available-for-sale securities	3,886		1,410


Other	583		797
Total deferred tax liabilities	$	15,809	$	16,194
Net deferred tax asset (liability)	$	6,437	$	(921)