XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31, 2021, 2020, and 2019 are as follows:
($ in thousands) | 2021 |  | 2020 |  | 2019
Current | - Federal | $ | 25,742 |  |  | 27,799 |  |  | 19,920 |
| - State | 3,733 |  |  | 3,909 |  |  | 2,499 |
Deferred | - Federal | (4,247) |  |  | (8,893) |  |  | 1,572 |
| - State | (553) |  |  | (1,161) |  |  | 239 |
Total | $ | 24,675 |  |  | 21,654 |  |  | 24,230 |
The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31, 2021 and 2020 are presented below:
($ in thousands) | 2021 |  | 2020
Deferred tax assets: |  |  |
Allowance for credit losses on loans | $ | 18,102 |  |  | 12,031 |
Allowance for credit losses on unfunded commitments | 3,103 |  |  | — |
Excess book over tax pension plan cost | 467 |  |  | 367 |
Deferred compensation | 571 |  |  | 257 |
Federal & state net operating loss and tax credit carryforwards | 206 |  |  | 282 |
Accruals, book versus tax | 4,235 |  |  | 3,232 |
Pension | 81 |  |  | 418 |
Unrealized losses on securities available for sale | 7,369 |  |  | — |
Foreclosed real estate | 20 |  |  | 123 |
Basis differences in assets acquired in FDIC transactions | 504 |  |  | 647 |
Purchase accounting adjustments | 4,076 |  |  | — |
Equity compensation | 694 |  |  | 661 |
Partnership investments | 310 |  |  | 258 |
Leases | 108 |  |  | 120 |
SBA servicing asset | 108 |  |  | 358 |
All other | 101 |  |  | 3 |
Gross deferred tax assets | 40,055 |  |  | 18,757 |
Less: Valuation allowance | (10) |  |  | (14) |
Net deferred tax assets | 40,045 |  |  | 18,743 |
Deferred tax liabilities: |  |  |
Loan fees | (2,840) |  |  | (1,011) |
Depreciable basis of fixed assets | (5,790) |  |  | (4,809) |
Amortizable basis of intangible assets | (10,328) |  |  | (7,965) |
FHLB stock dividends | — |  |  | (236) |
Trust preferred securities | (453) |  |  | (473) |
Unrealized gain on securities available for sale | — |  |  | (4,699) |
Gross deferred tax liabilities | (19,411) |  |  | (19,193) |
Net deferred tax asset (liability) - included in other assets (liabilities) | $ | 20,634 |  |  | (450) |
The valuation allowances for 2021 and 2020 related primarily to state net operating loss carryforwards. It is management’s belief that the realization of the remaining net deferred tax assets is more likely than not. The Company had no significant uncertain tax positions, and thus no reserve for uncertain tax positions has been recorded. Additionally, the Company determined that it has no material unrecognized tax benefits that if recognized would affect the effective tax rate. The Company’s general policy is to record tax penalties and interest as a component of “other operating expenses.” The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The Company’s tax returns are subject to income tax audit by federal and state agencies beginning with the year 2018. There are no indications of any material adjustments relating to any examination currently being conducted by any taxing authority. Retained earnings at December 31, 2021 and 2020 included approximately $6.9 million representing pre-1988 tax bad debt reserve base year amounts for which no deferred income tax liability has been provided since these reserves are not expected to reverse or may never reverse. Circumstances that would require an accrual of a portion or all of this unrecorded tax liability are a reduction in qualifying loan levels relative to the end of 1987, failure to meet the definition of a bank, dividend payments in excess of accumulated tax earnings and profits, or other distributions in dissolution, liquidation or redemption of the Bank’s stock. The following is a reconcilement of federal income tax expense at the statutory rate of 21% at December 31, 2021 and December 31, 2020 and December 31, 2019, to the income tax provision reported in the financial statements.
($ in thousands) | 2021 |  | 2020 |  | 2019
Tax provision at statutory rate | $ | 25,266 |  |  | 21,657 |  |  | 24,418 |
Increase (decrease) in income taxes resulting from: |  |  |  |  |
Tax-exempt interest income | (1,589) |  |  | (1,050) |  |  | (1,186) |
Low income housing tax credits | (1,229) |  |  | (772) |  |  | (756) |
Bank-owned life insurance income | (589) |  |  | (532) |  |  | (538) |
Non-deductible interest expense | 14 |  |  | 23 |  |  | 43 |
State income taxes, net of federal benefit | 2,472 |  |  | 2,117 |  |  | 2,178 |
Nondeductible merger expenses | 242 |  |  | — |  |  | — |
Change in valuation allowance | (10) |  |  | (20) |  |  | 4 |
Impact of tax reform | — |  |  | — |  |  | (73) |
Other, net | 98 |  |  | 231 |  |  | 140 |
Total | $ | 24,675 |  |  | 21,654 |  |  | 24,230 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration