Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Provision (Benefit)

The income tax provision for the years ended December 31 is as follows:



	2019		2018			2017
	(dollars in thousands)
Current tax provision:
Federal	$	22,942	$	21,330		$	29,071
State	282		298			274
Total current tax provision	23,224		21,628			29,345
Deferred tax provision (benefit):
Federal	2,284		3,666			19,237
State	8		(20		)	(21		)
Total deferred tax provision	2,292		3,646			19,216
Total tax provision	$	25,516	$	25,274		$	48,561

Schedule of Effective Income Tax Rate Reconciliation

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:



	2019					2018					2017
	Amount			% of Pretax Income		Amount			% of Pretax Income		Amount			% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	27,478		21	%	$	27,882		21	%	$	36,304		35	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	229			—		220			—		164			—
Income from bank owned life insurance	(1,260		)	(1	)	(1,404		)	(1	)	(1,995		)	(2	)
Tax-exempt interest income, net	(1,298		)	(1	)	(1,473		)	(1	)	(2,709		)	(3	)
Tax credits	(7		)	—		(5		)	—		(11		)	—
Enactment of federal tax reform	—			—		(346		)	—		16,709			17
Other	374			—		400			—		99			—
Total tax provision	$	25,516		19	%	$	25,274		19	%	$	48,561		47	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:



	2019			2018
	(dollars in thousands)
Deferred tax assets:
Lease liability	$	11,203		$	—
Allowance for credit losses	10,937			10,116
Postretirement benefits other than pensions	275			311
Alternative minimum tax credit carryforward	216			216
Unrealized loss on securities available for sale	—			3,137
Net operating loss carryforward	2,017			3,636
Writedown of other real estate owned	48			711
Deferred compensation	1,720			1,426
Accrued interest on nonaccrual loans	710			629
Accrued incentives	2,185			2,477
Unfunded loan commitments & other reserves	964			1,064
Deferred rent	28			799
Other	956			1,486
Total deferred tax assets	31,259			26,008
Deferred tax liabilities:
Right of use asset	$	(10,302	)	$	—
Unrealized gain on securities available for sale	(1,386		)	—
Depreciation of assets	(1,470		)	(1,378		)
Other	(1,239		)	(1,064		)
Total deferred tax liabilities	(14,397		)	(2,442		)
Net deferred tax asset	$	16,862		$	23,566