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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
INCOME TAXES  
Scedule of Components of Income Tax Expense

Income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following:

(dollars in thousands)

    

2019

    

2018

    

2017

Current federal

$

19,430

$

16,871

$

27,064

Deferred federal

 

(408)

 

707

 

(199)

Revalue deferred taxes due to tax reform

 

0

 

(408)

 

4,137

Current state

 

1,394

 

1,462

 

1,559

Deferred state

 

(78)

 

(99)

 

(257)

Total income tax expense

$

20,338

$

18,533

$

32,304

Schedule of 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 2019 and 2018 and 35% for 2017 to income before income taxes were as follows:

(dollars in thousands)

    

2019

    

2018

    

2017

Income taxes at statutory federal rate of 21% (2019 and 2018) and 35% (2017)

$

22,551

$

20,778

$

31,372

Increase (decrease) in taxes resulting from:

 

 

  

 

  

Tax exempt income

 

(1,682)

 

(1,434)

 

(2,015)

Nondeductible expense

 

194

 

165

 

193

State income tax, net of federal tax effect

 

1,040

 

1,077

 

846

Captive insurance premium income

 

(310)

 

(292)

 

(378)

Tax credits

 

(548)

 

(412)

 

(326)

Bank owned life insurance

 

(573)

 

(303)

 

(619)

Long - term incentive plan

 

(421)

 

(641)

 

(854)

Revaluation deferred tax asset at 21% rate

 

0

 

(408)

 

4,137

Other

 

87

 

3

 

(52)

Total income tax expense

$

20,338

$

18,533

$

32,304

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2019 and 2018 consisted of the following:

(dollars in thousands)

    

2019

    

2018

Deferred tax assets:

 

  

 

  

Bad debts

$

12,945

$

12,478

Pension and deferred compensation liability

 

1,505

 

1,188

Nonaccrual loan interest

 

1,104

 

937

Long-term incentive plan

 

2,281

 

2,357

Lease liability

1,303

0

Other

 

510

 

506

 

19,648

 

17,466

Deferred tax liabilities:

 

  

 

  

Depreciation

 

4,741

 

4,583

Loan servicing rights

 

1,019

 

877

State taxes

 

464

 

447

Intangible assets

 

1,270

 

1,280

REIT spillover dividend

 

1,401

 

1,231

Prepaid expenses

 

795

 

786

Lease Right of Use

1,303

0

Other

 

382

 

475

 

11,375

 

9,679

Valuation allowance

 

0

 

0

Net deferred tax asset

$

8,273

$

7,787