XML 38 R21.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
| 2020 | 2019
Allowance for credit losses | $ | 5,883 |  | $ | 2,708 |
Deferred compensation payable | 3,165 |  | 2,912 |
Underfunded pension liability | 1,784 |  | 1,912 |
Accrued expenses | 2,218 |  | 1,196 |
Other | 4,543 |  | 8,570 |
Total Deferred Tax Assets | 17,593 |  | 17,298 |
Unrealized securities gains | 11,637 |  | 3,709 |
Other | 9,158 |  | 6,920 |
Total Deferred Tax Liabilities | 20,795 |  | 10,629 |
Net Deferred Tax (Liabilities)/Assets | $ | (3,202) |  | $ | 6,669 |
No material valuation allowances for deferred tax assets were recorded at December 31, 2020 or 2019 as the Company believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years. Significant components of the provision for income taxes are as follows (in thousands):
| 2020 | 2019 | 2018
Current: |  |  |
Federal | $ | 16,599 |  | $ | 16,636 |  | $ | 16,846 |
State | 2,478 |  | 2,560 |  | 2,413 |
Total current tax expense | 19,077 |  | 19,196 |  | 19,259 |
Total deferred tax expense | 2,640 |  | 4,939 |  | (1,244) |
Income tax expense | $ | 21,717 |  | $ | 24,135 |  | $ | 18,015 |
A reconciliation of the significant differences between the federal statutory income tax rate and the Company’s effective income tax rate is as follows (in thousands):
| 2020 | 2019 | 2018
Computed federal taxes at statutory rate | $ | 23,376 |  | $ | 23,832 |  | $ | 18,483 |
State income taxes, net of federal tax benefit | 2,070 |  | 2,376 |  | 1,730 |
Tax effects of: |  |  |
Tax-exempt interest income | (944) |  | (733) |  | (694) |
Bank-owned life insurance | (929) |  | (791) |  | (649) |
Income tax credits | (1,113) |  | (889) |  | (575) |
Other items, net | (743) |  | 340 |  | (280) |
Income tax expense | $ | 21,717 |  | $ | 24,135 |  | $ | 18,015 |
The entire amount of the Company’s unrecognized tax benefits, if recognized, would favorably affect the Company’s effective tax rate. The Company anticipates that it will release $0.6 million over the next 12 months. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):
| 2020 | 2019
Beginning balance | $ | 1,807 |  | $ | 1,811 |
Additions for current year tax positions | 413 |  | 115 |
Additions for prior year tax positions | 434 |  | 377 |
Decreases related to lapse of applicable statute of limitation | (565) |  | (496) |
Ending balance | $ | 2,089 |  | $ | 1,807 |
Interest and penalties on income tax uncertainties are included in income tax expense. During 2020, 2019 and 2018, the provision related to interest and penalties was approximately $0.2 million, $0.6 million, and $0.2 million, respectively. The balance of accrued interest and penalties at December 31, 2020 and 2019 was $0.9 million and $0.7 million, respectively. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and various state taxing authorities for the years ended December 31, 2017 and forward.

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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration