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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
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


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


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
)

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