XML 37 R21.htm IDEA: XBRL DOCUMENT
v3.20.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2020
INCOME TAXES |
INCOME TAXES | NOTE 13 – INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (“Act”) was enacted into law and, among other items, reduced the corporate income tax rate from 35% to 21%, effective January 1, 2018. The enactment of this law resulted in a lower federal income tax rate resulting in a reduction of the benefit provided by the Company’s existing deferred tax assets. In accordance with ASC Topic 740, “Income Taxes”, the Company revalued its net deferred tax asset based on facts and circumstances available for the reporting period ending December 31, 2017 in which the Act was enacted and through the time the Company issues its financial statements for that reporting period. Through the preparation the Company’s 2017 corporate tax return and the completion of cost segregation studies on new construction projects, the Company recognized a tax benefit of $408,000 for the year ending December 31, 2018. Income tax expense for the years ended December 31, 2020, 2019 and 2018 consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(dollars in thousands) |  | 2020 |  | 2019 |  | 2018
Current federal | ​ | $ | 20,032 | ​ | $ | 19,430 | ​ | $ | 16,871
Deferred federal | ​ |  | (1,688) | ​ |  | (408) | ​ |  | 707
Revalue deferred taxes due to tax reform | ​ |  | — | ​ |  | — | ​ |  | (408)
Current state | ​ |  | 1,484 | ​ |  | 1,394 | ​ |  | 1,462
Deferred state | ​ |  | (289) | ​ |  | (78) | ​ |  | (99)
Total income tax expense | ​ | $ | 19,539 | ​ | $ | 20,338 | ​ | $ | 18,533
​ The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes were as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(dollars in thousands) |  | 2020 |  | 2019 |  | 2018
Income taxes at statutory federal rate of 21% | ​ | $ | 21,814 | ​ | $ | 22,551 | ​ | $ | 20,778
Increase (decrease) in taxes resulting from: | ​ |  | ​ | ​ |  | ​ | ​ |  |
Tax exempt income | ​ |  | (1,925) | ​ |  | (1,682) | ​ |  | (1,434)
Nondeductible expense | ​ |  | 117 | ​ |  | 194 | ​ |  | 165
State income tax, net of federal tax effect | ​ |  | 944 | ​ |  | 1,040 | ​ |  | 1,077
Captive insurance premium income | ​ |  | (227) | ​ |  | (310) | ​ |  | (292)
Tax credits | ​ |  | (540) | ​ |  | (548) | ​ |  | (412)
Bank owned life insurance | ​ |  | (595) | ​ |  | (573) | ​ |  | (303)
Long - term incentive plan | ​ |  | (58) | ​ |  | (421) | ​ |  | (641)
Revaluation deferred tax asset at 21% rate | ​ |  | — | ​ |  | — | ​ |  | (408)
Other | ​ |  | 9 | ​ |  | 87 | ​ |  | 3
Total income tax expense | ​ | $ | 19,539 | ​ | $ | 20,338 | ​ | $ | 18,533
​ ​ NOTE 13 – INCOME TAXES (continued) The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2020 and 2019 consisted of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​
(dollars in thousands) |  | 2020 |  | 2019
Deferred tax assets: |  | ​ |  |  | ​ |
Bad debts | ​ | $ | 15,634 | ​ | $ | 12,945
Pension and deferred compensation liability | ​ |  | 2,006 | ​ |  | 1,505
Nonaccrual loan interest | ​ |  | 892 | ​ |  | 1,104
Long-term incentive plan | ​ |  | 1,212 | ​ |  | 2,281
Lease liability | ​ | ​ | 1,190 | ​ | ​ | 1,303
Other | ​ |  | 745 | ​ |  | 510
​ | ​ |  | 21,679 | ​ |  | 19,648
Deferred tax liabilities: | ​ |  | ​ | ​ |  |
Depreciation | ​ |  | 4,718 | ​ |  | 4,741
Loan servicing rights | ​ |  | 1,162 | ​ |  | 1,019
State taxes | ​ |  | 524 | ​ |  | 464
Intangible assets | ​ |  | 1,265 | ​ |  | 1,270
REIT spillover dividend | ​ |  | 1,180 | ​ |  | 1,401
Prepaid expenses | ​ |  | 948 | ​ |  | 795
Lease right of use | ​ | ​ | 1,190 | ​ | ​ | 1,303
Other | ​ |  | 442 | ​ |  | 382
​ | ​ |  | 11,429 | ​ |  | 11,375
Valuation allowance | ​ |  | — | ​ |  | —
Net deferred tax asset | ​ | $ | 10,250 | ​ | $ | 8,273
​ In addition to the net deferred tax assets included above, the deferred income tax asset (liability) allocated to the unrealized net gain (loss) on securities available-for-sale included in equity was ($7.8) million and ($3.6) million for 2020 and 2019, respectively. The deferred income tax asset allocated to the pension plan and SERP included in equity was $476,000 and $512,000 for 2020 and 2019, respectively. The Company evaluated its deferred tax asset at year end 2020 and has concluded that it is more likely than not that it will be realized. The Company expects to have taxable income in the future such that the deferred tax asset will be realized. Therefore, no valuation allowance is required. Unrecognized Tax Benefits The Company did not have any unrecognized tax benefits at December 31, 2020 or 2019. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No interest or penalties were recorded in the income statement and no amount was accrued for interest and penalties for the period ending December 31, 2020, 2019 and 2018. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in its income taxes accounts. The Company and its subsidiaries file a consolidated U.S. federal tax return and a combined unitary return in the States of Indiana and Michigan. These returns are subject to examinations by authorities for all years after 2016. ​

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