Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 18 – INCOME TAXES

The provision for income taxes (credit) consists of the following:

		2020			2019			2018
Current expense	$	9,922		$	7,626		$	6,123
Deferred expense (benefit)		(1,526	)		(311	)		(409	)
TOTALS	$	8,396		$	7,315		$	5,714

Effective tax rates differ from federal statutory rate of 21% that were applied to income before income taxes due to the following:

		2020		2019			2018
Statutory tax	$	10,557		$	9,046		$	8,039
Effect of nontaxable interest		(1,896	)		(1,655	)		(1,439	)
Bank owned life insurance, net		(167	)		(171	)		(182	)
Tax credits		23			3			24
Effect of nontaxable insurance premiums		(198	)		(204	)		(188	)
Stock compensation		12			(100	)		(486	)
Other		65			396			(54	)
ACTUAL TAX	$	8,396		$	7,315		$	5,714

Deferred tax assets (liabilities) are comprised of the following:

		2020			2019
Deferred tax assets:
Allowance for credit losses	$	4,650		$	3,032
Deferred and accrued compensation		1,413			1,194
Deferred loan fees and costs		507			584
Nonaccrual loan interest income		563			429
Other-than-temporary impairment		24			0
Restricted stock		521			456
Lease liabilities		1,043			669
Other		0			46
Gross deferred tax assets	$	8,721		$	6,410
Deferred tax liabilities:
Depreciation and amortization	$	(748	)	$	(577	)
Net unrealized gain on securities available for sale		(5,857	)		(2,612	)
Federal Home Loan Bank dividends		(684	)		(658	)
Purchase accounting adjustments		(1,313	)		(359	)
Mortgage servicing rights		(672	)		(363	)
Prepaid expenses		(274	)		(224	)
Lease right of use asset		(1,014	)		(655	)
Other		(107	)		0
Gross deferred tax liabilities		(10,669	)		(5,448	)
NET DEFERRED TAX ASSET (LIABILITY)	$	(1,948	)	$	962

No valuation allowance for deferred tax assets was recorded at December 31, 2020 and 2019.

At December 31, 2020 and December 31, 2019, the Company had no unrecognized tax benefits recorded.  The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months.

The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2017.  The tax years 2017—2019 remain open to examination by the U.S. taxing authority.