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INCOME TAXES (Tables)
3 Months Ended
Mar. 31, 2021
INCOME TAXES  
Schedule of allocation of federal and state income taxes between current and deferred portions

Three Months Ended

March 31, 

    

2021

    

2020

(dollars in thousands)

Current

Federal

$

3,170

$

1,721

State

1,698

988

Total current

4,868

2,709

Deferred

Federal

457

(457)

State

228

(221)

Total deferred

 

685

 

(678)

Income tax expense

$

5,553

$

2,031

Schedule of effective income tax rate reconciliation

Three Months Ended March 31, 

2021

2020

Amount

Percentage

Amount

Percentage

(dollars in thousands)

Federal income tax, at statutory rate

$

4,368

21.0

%

$

1,733

21.0

%

Increase (decrease) resulting from:

Federally tax exempt interest income

(367)

(1.8)

(357)

(4.3)

State taxes, net of federal benefit

1,514

 

7.3

631

 

7.6

Other

38

 

0.2

24

 

0.3

Income tax expense

$

5,553

 

26.7

%

$

2,031

 

24.6

%

Schedule of components of the net deferred tax asset (liability)

March 31, 

December 31, 

2021

2020

(dollars in thousands)

Deferred tax assets

    

 

Allowance for loan losses

$

8,170

 

$

9,046

Compensation related

1,802

 

2,301

Deferred loan fees

2,470

1,595

Nonaccrual interest

 

646

660

Foreclosed assets

 

59

45

Goodwill

 

287

336

Other

 

1,049

1,011

Total deferred tax assets

 

14,483

14,994

Deferred tax liabilities

Fixed asset depreciation

 

4,368

4,361

Mortgage servicing rights

 

2,175

1,692

Other purchase accounting adjustments

1,080

1,115

Intangible assets

521

580

Prepaid assets

 

557

685

Net unrealized gain on debt securities

 

1

6,569

Other

 

367

370

Total deferred tax liabilities

 

9,069

15,372

Net deferred tax asset (liability)

$

5,414

$

(378)