Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Provision (Benefit)

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


	2020		2019		2018
	(dollars in thousands)
Current tax provision:
Federal	$	21,629	$	22,942	$	21,330
State	329		282		298
Total current tax provision	21,958		23,224		21,628
Deferred tax provision (benefit):
Federal	(5,070)		2,284		3,666

State	(132)		8		(20)
Total deferred tax provision	(5,202)		2,292		3,646
Total tax provision	$	16,756	$	25,516	$	25,274

Schedule of Effective Income Tax Rate Reconciliation

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


	2020				2019				2018
	Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
	(dollars in thousands)
Tax at statutory rate	$	18,943	21	%	$	27,478	21	%	$	27,882	21	%
Increase (decrease) resulting from:
State income tax, net of federal benefit	155		—		229		—		220		—
Income from bank owned life insurance	(1,376)		(1)		(1,260)		(1)		(1,404)		(1)
Tax-exempt interest income, net	(1,117)		(1)		(1,298)		(1)		(1,473)		(1)
Tax credits	(44)		—		(7)		—		(5)		—
Enactment of federal tax reform	—		—		—		—		(346)		—
Other	195		—		374		—		400		—
Total tax provision	$	16,756	19	%	$	25,516	19	%	$	25,274	19	%

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:


	2020		2019
	(dollars in thousands)
Deferred tax assets:
Lease liability	$	9,928	$	11,203
Allowance for credit losses	21,483		10,937
Postretirement benefits other than pensions	242		275
Alternative minimum tax credit carryforward	—		216


Net operating loss carryforward	385		2,017


Deferred compensation	1,723		1,720

Accrued interest on nonaccrual loans	644		710



Accrued incentives	2,182		2,185
Unfunded loan commitments & other reserves	1,576		964




Other	1,831		1,032
Total deferred tax assets	39,994		31,259
Deferred tax liabilities:

Loan origination fees and costs	(1,280)		(626)

Right of use asset	$	(9,037)	$	(10,302)
Unrealized gain on securities available for sale	(4,629)		(1,386)
Depreciation of assets	(2,103)		(1,470)
Section 197 intangibles	(540)		(45)
Other	(424)		(568)
Total deferred tax liabilities	(18,013)		(14,397)
Net deferred tax asset	$	21,981	$	16,862