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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)
Income tax expense for the years ended December 31, 2018, 2017 and 2016 consisted of the following:
 
 
(dollars in thousands)
2018
 
2017
 
2016
Current federal
$16,871
 
$27,064
 
$23,749
Deferred federal
707
 
(199)
 
268
Revalue deferred taxes due to tax reform
(408)
 
4,137
 
0
Current state
1,462
 
1,559
 
1,086
Deferred state
(99)
 
(257)
 
30
  Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$18,533
 
$32,304
 
$25,133
Differences In Taxes From Continuing Operations The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% for 2018 and 35% for 2017 and 2016 to income before income taxes were as follows:
 
 
(dollars in thousands)
2018
 
2017
 
2016
Income taxes at statutory federal rate of 21% (2018) and 35% (prior years)
$20,778
 
$31,372
 
$27,026
Increase (decrease) in taxes resulting from:
     
  Tax exempt income
(1,434)
 
(2,015)
 
(1,498)
  Nondeductible expense
165
 
193
 
190
  State income tax, net of federal tax effect
1,077
 
846
 
726
  Captive insurance premium income
(292)
 
(378)
 
(361)
  Tax credits
(412)
 
(326)
 
(311)
  Bank owned life insurance
(303)
 
(619)
 
(554)
  Long - term incentive plan
(641)
 
(854)
 
0
  Revaluation deferred tax asset at 21% rate
(408)
 
4,137
 
0
  Other
3
 
(52)
 
(85)
    Total income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$18,533
 
$32,304
 
$25,133
Deferred Tax Assets and Liabilities
The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2018 and 2017 consisted of the following:
 
 
(dollars in thousands)
2018
 
2017
Deferred tax assets:
   
  Bad debts
$12,478
 
$12,043
  Pension and deferred compensation liability
1,188
 
1,028
  Nonaccrual loan interest
937
 
970
  Long-term incentive plan
2,357
 
2,043
  Other
506
 
403
 
17,466
 
16,487
Deferred tax liabilities:
   
  Depreciation
4,583
 
3,614
  Loan servicing rights
877
 
793
  State taxes
447
 
426
  Intangible assets
1,280
 
1,261
  REIT spillover dividend
1,231
 
1,242
  Prepaid expenses
786
 
752
  Other
475
 
412
 
9,679
 
8,500
Valuation allowance
0
 
0
Net deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$7,787
 
$7,987