Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense

The following table presents the components of income tax expense:



(Dollars in thousands)
Years ended December 31,	2019			2018			2017
Current tax expense:
Federal		$17,298			$15,460			$23,827
State	3,254			2,863			2,201
Total current tax expense	20,552			18,323			26,028
Deferred tax (benefit) expense:
Federal	(1,294		)	63			5,717
State	(197		)	(126		)	(30		)
Total deferred (benefit) tax expense	(1,491		)	(63		)	5,687
Total income tax expense		$19,061			$18,260			$31,715

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes. The following table presents the reasons for the differences:



Years ended December 31,	2019					2018					2017
(Dollars in thousands)	Amount			Rate		Amount			Rate		Amount			Rate
Tax expense at Federal statutory rate		$18,518		21.0	%		$18,205		21.0	%		$27,174		35.0	%
(Decrease) increase in taxes resulting from:
Tax-exempt income, net	(814		)	(0.9	)	(809		)	(0.9	)	(1,313		)	(1.7	)
Dividends received deduction	(36		)	—		(45		)	(0.1	)	(55		)	(0.1	)
BOLI	(494		)	(0.6	)	(461		)	(0.5	)	(757		)	(0.9	)
Share-based compensation	(221		)	(0.3	)	(444		)	(0.5	)	(481		)	(0.6	)
Federal tax credits	(364		)	(0.4	)	(364		)	(0.4	)	(364		)	(0.5	)
Change in fair value of contingent consideration	—			—		(39		)	(0.1	)	(225		)	(0.3	)
State income tax expense, net of federal tax benefit	2,417			2.7		2,162			2.5		1,411			1.8
Adjustment to net deferred tax assets for enacted changes in federal tax law	—			—		—			—		6,170			7.9
Other	55			0.1		55			0.1		155			0.2
Total income tax expense		$19,061		21.6	%		$18,260		21.1	%		$31,715		40.8	%

Schedule of Deferred Tax Assets and Liabilities

The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities:



(Dollars in thousands)
December 31,	2019			2018
Deferred tax assets:
Allowance for loan losses		$6,348			$6,362
Operating lease liabilities	6,782			—
Defined benefit pension obligations	1,361			420
Deferred compensation	4,200			3,688
Deferred loan origination fees	1,505			1,410
Share-based compensation	1,358			1,124
Net unrealized losses on available for sale debt securities	—			5,149
Other	2,031			1,917
Deferred tax assets	23,585			20,070
Deferred tax liabilities:
Net unrealized gains on available for sale debt securities	(991		)	—
Amortization of intangibles	(1,696		)	(1,918		)
Operating lease right-of-use assets	(6,296		)	—
Deferred loan origination costs	(4,084		)	(3,897		)
Loan servicing rights	(829		)	(858		)
Other	(1,388		)	(1,120		)
Deferred tax liabilities	(15,284		)	(7,793		)
Net deferred tax asset		$8,301			$12,277