Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2019 |
Income Tax Disclosure [Abstract] |
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Schedule of income tax allocation |
Total income taxes for the years ended December 31, 2019, 2018, and 2017 were allocated as follows: | | | | | | | | | | | ($ in thousands) | 2019 | | 2018 | | 2017 | Allocated to net income | $ | 24,230 |
| | 24,189 |
| | 21,767 |
| Allocated to stockholders’ equity, for unrealized holding gain/loss on debt and equity securities for financial reporting purposes | 5,135 |
| | (2,379 | ) | | 321 |
| Allocated to stockholders’ equity, for tax benefit of pension liabilities | 42 |
| | (5 | ) | | 668 |
| Total income taxes | $ | 29,407 |
| | 21,805 |
| | 22,756 |
|
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Schedule of components of Income tax expense |
The components of income tax expense for the years ended December 31, 2019, 2018, and 2017 are as follows: | | | | | | | | | | | | ($ in thousands) | 2019 | | 2018 | | 2017 | Current | - Federal | $ | 19,920 |
| | 19,188 |
| | 11,286 |
| | - State | 2,499 |
| | 3,187 |
| | 1,996 |
| Deferred | - Federal | 1,572 |
| | 1,658 |
| | 7,742 |
| | - State | 239 |
| | 156 |
| | 743 |
| Total | $ | 24,230 |
| | 24,189 |
| | 21,767 |
|
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Schedule of deferred tax assets and liabilities |
The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2019 and 2018 are presented below: | | | | | | | | ($ in thousands) | 2019 | | 2018 | Deferred tax assets: | |
| | |
| Allowance for loan losses | $ | 4,916 |
| | 4,917 |
| Excess book over tax pension plan cost | 241 |
| | 92 |
| Deferred compensation | 293 |
| | 367 |
| Federal & state net operating loss and tax credit carryforwards | 376 |
| | 631 |
| Accruals, book versus tax | 2,833 |
| | 3,036 |
| Pension liability adjustments | 710 |
| | 752 |
| Foreclosed real estate | 87 |
| | 715 |
| Basis differences in assets acquired in FDIC transactions | 416 |
| | 1,121 |
| Nonqualified stock options | 370 |
| | 240 |
| Partnership investments | 254 |
| | 208 |
| Unrealized loss on securities available for sale | — |
| | 2,895 |
| SBA servicing asset | 400 |
| | 310 |
| All other | 3 |
| | 42 |
| Gross deferred tax assets | 10,899 |
| | 15,326 |
| Less: Valuation allowance | (40 | ) | | (36 | ) | Net deferred tax assets | 10,859 |
| | 15,290 |
| Deferred tax liabilities: | | | | Loan fees | (2,428 | ) | | (2,484 | ) | Excess book over tax pension plan cost | — |
| | — |
| Depreciable basis of fixed assets | (4,995 | ) | | (4,278 | ) | Amortizable basis of intangible assets | (7,844 | ) | | (7,921 | ) | FHLB stock dividends | (472 | ) | | (721 | ) | Trust preferred securities | (548 | ) | | (528 | ) | Purchase accounting adjustments | (84 | ) | | (122 | ) | Unrealized gain on securities available for sale | (2,239 | ) | | — |
| Gross deferred tax liabilities | (18,610 | ) | | (16,054 | ) | Net deferred tax liability - included in other liabilities | $ | (7,751 | ) | | (764 | ) |
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Schedule of effective tax rate reconciliation |
The following is a reconcilement of federal income tax expense at the statutory rate of 21% at December 31, 2019 and December 31, 2018 and 35% at 2017, to the income tax provision reported in the financial statements. | | | | | | | | | | | ($ in thousands) | 2019 | | 2018 | | 2017 | Tax provision at statutory rate | $ | 24,418 |
| | 23,830 |
| | 23,709 |
| Increase (decrease) in income taxes resulting from: | | | | | | Tax-exempt interest income | (1,186 | ) | | (1,117 | ) | | (1,461 | ) | Low income housing tax credits | (756 | ) | | (698 | ) | | (596 | ) | Non-deductible interest expense | 43 |
| | 27 |
| | 24 |
| State income taxes, net of federal benefit | 2,178 |
| | 2,639 |
| | 1,780 |
| Change in valuation allowance | 4 |
| | (8 | ) | | (1 | ) | Impact of tax reform | (73 | ) | | — |
| | (1,269 | ) | Other, net | (398 | ) | | (484 | ) | | (419 | ) | Total | $ | 24,230 |
| | 24,189 |
| | 21,767 |
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