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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Summary of Income Tax Expense | Income tax expense consisted of the following:
|  | Years Ended December 31, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Income tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 14,091 |  |  | $ | 14,714 |  |  | $ | 10,922 |
Deferred |  |  | 708 |  |  |  | 10,174 |  |  |  | 1,941 |
Change in valuation allowance for deferred tax asset |  |  | (7 | ) |  |  | (10 | ) |  |  | (54 | )
Income tax expense |  | $ | 14,792 |  |  | $ | 24,878 |  |  | $ | 12,809 |
Summary of Effective Income Tax Rate Reconciliation | Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following:
|  | Years Ended December 31, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Tax provision computed at federal statutory rate |  | $ | 13,965 |  |  | $ | 21,384 |  |  | $ | 11,728 |
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net |  |  | 1,716 |  |  |  | 1,112 |  |  |  | 852 |
Tax reform impact(1) |  |  | — |  |  |  | 2,984 |  |  |  | — |
Transaction costs |  |  | — |  |  |  | — |  |  |  | 325 |
Bank-owned life insurance |  |  | (141 | ) |  |  | (246 | ) |  |  | (201 | )
Tax exempt interest |  |  | (436 | ) |  |  | (545 | ) |  |  | (129 | )
Change in valuation allowance for deferred tax asset |  |  | (7 | ) |  |  | (10 | ) |  |  | (54 | )
Other |  |  | (305 | ) |  |  | 199 |  |  |  | 288 |
Income tax expense |  | $ | 14,792 |  |  | $ | 24,878 |  |  | $ | 12,809 |
(1) On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $2,984,000 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%.
Significant Components of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the recorded 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:
(Dollars in thousands) |  | 2018 |  |  | 2017 |
Deferred tax assets |  |  |  |  |  |  |  |
Federal net operating loss carryforwards |  | $ | 6,111 |  |  | $ | 7,180 |
State net operating loss carryforwards |  |  | 541 |  |  |  | 1,338 |
Acquired loan basis |  |  | 587 |  |  |  | 1,159 |
Other real estate owned |  |  | 134 |  |  |  | 394 |
AMT credit carryforward |  |  | 2,855 |  |  |  | 2,855 |
Allowance for loan losses |  |  | 6,382 |  |  |  | 4,825 |
Unrealized loss on securities available for sale |  |  | 356 |  |  |  | 176 |
Accrued liabilities |  |  | 1,714 |  |  |  | 333 |
Other |  |  | 1,537 |  |  |  | 885 |
Total deferred tax assets |  |  | 20,217 |  |  |  | 19,145 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Goodwill and intangible assets |  |  | 1,661 |  |  |  | 2,233 |
Fair value adjustment on junior subordinated debentures |  |  | 2,468 |  |  |  | 2,792 |
Premises and equipment |  |  | 4,804 |  |  |  | 2,273 |
Installment gain on sale of subsidiary |  |  | 2,292 |  |  |  | 2,230 |
Other |  |  | 299 |  |  |  | 396 |
Total deferred tax liabilities |  |  | 11,524 |  |  |  | 9,924 |
Net deferred tax asset before valuation allowance |  |  | 8,693 |  |  |  | 9,221 |
Valuation allowance |  |  | (255 | ) |  |  | (262 | )
Net deferred tax asset |  | $ | 8,438 |  |  | $ | 8,959 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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