Note 14 - Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Notes Tables

Schedule of Federal and state income tax expense

	2020		2019		2018
	(dollars in thousands)
Current	$	27,237	$	8,255	$	2,723
Deferred		(14,530)		6,364		6,292
	$	12,707	$	14,619	$	9,015

Reconciliation of the expected federal income tax expense

	Year Ended December 31,
	2020				2019				2018
			% of				% of				% of
			Pretax				Pretax				Pretax
	Amount		Income		Amount		Income		Amount		Income
	(dollars in thousands)
Computed "expected" tax expense	$	15,391	21.0	%	$	15,126	21.0	%	$	10,948	21.0	%
Tax exempt income, net		(5,943)	(8.1)			(4,470)	(6.2)			(3,958)	(7.6)
Bank-owned life insurance		(308)	(0.4)			(360)	(0.5)			(343)	(0.6)
State income taxes, net of federal benefit, current year		3,622	4.9			3,668	5.1			2,681	5.2
Change in unrecognized tax benefits		546	0.7			(93)	(0.1)			(45)	(0.1)
Goodwill impairment		105	0.1			630	0.9			—	—
Intended liquidation of bank-owned life insurance		—	—			790	1.1			—	—
Tax credits		(456)	(0.6)			(705)	(1.0)			(154)	(0.3)
Acquisition costs		—	—			—	—			227	0.4
Excess tax benefit on stock options exercised and restricted stock awards vested		(242)	(0.3)			(287)	(0.4)			(425)	(0.8)
Other		(215)	(0.3)			320	0.4			84	0.1
Federal and state income tax expense	$	12,707	17.3	%	$	14,619	20.3	%	$	9,015	17.3	%

Schedule of Unrecognized tax benefits

	2020		2019
	(dollars in thousands)
Balance, beginning	$	1,254	$	1,249
Impact of tax positions taken during current year		787		375
Gross increase (decrease) related to tax positions of prior years		39		44
Reduction as a result of a lapse of the applicable statute of limitations		(187)		(414)
Balance, ending	$	1,893	$	1,254

Schedule of Deferred Tax Assets and Liabilities

	2020		2019
	(dollars in thousands)
Deferred tax assets:
Historic tax credits	$	68	$	68
Net unrealized losses on securities available for sale and derivative instruments		—		126
Compensation		10,288		8,433
Loan/lease losses		20,016		11,332
Net operating loss carryforwards, federal and state		628		739
Other		71		605
		31,071		21,303
Deferred tax liabilities:
Net unrealized gains on securities available for sale and derivative instruments		869		—
Premises and equipment		5,737		4,616
Equipment financing leases		13,373		16,252
Acquisition fair value adjustments		3,351		3,963
Intended liquidation of bank-owned life insurance		—		850
Gain on sale of assets and liabilities of subsidiary		—		794
Investment accretion		28		28
Deferred loan origination fees, net		197		704
Other		922		832
		24,477		28,039
Net deferred tax liabilities	$	6,594	$	(6,736)

Change in deferred income taxes

	2020		2019		2018
	(dollars in thousands)
Provision for income taxes	$	(14,530)	$	6,364	$	6,292
Net deferred tax asset resulting from market value adjustments of acquisitions		—		(381)		(52)
Net deferred tax assets resulting from sale of other subsidiary		363		—		—
Net deferred tax liabilities resulting from sale of bank subsidiary		—		(1,644)		—
Statement of stockholders' equity- Other comprehensive income (loss)		837		1,433		(1,000)
	$	(13,330)	$	5,772	$	5,240