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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Note 15 -- Income Taxes The components of federal and state income tax expense for the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands):
|  | 2020 |  |  | 2019 |  |  | 2018 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 12,315 |  |  | $ | 8,538 |  |  | $ | 4,841 |
State |  |  | 7,120 |  |  |  | 4,900 |  |  |  | 2,781 |
Total Current |  |  | 19,435 |  |  |  | 13,438 |  |  |  | 7,622 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (3,318 | ) |  |  | 1,368 |  |  |  | 2,818 |
State |  |  | (1,645 | ) |  |  | 517 |  |  |  | 1,465 |
Total Deferred |  |  | (4,963 | ) |  |  | 1,885 |  |  |  | 4,283 |
Total |  | $ | 14,472 |  |  | $ | 15,323 |  |  | $ | 11,905 |
Recorded income tax expense differs from the expected tax expense (computed by applying the applicable statutory U.S. federal tax rate of 21% to income before income taxes). During 2020, 2019 and 2018, the Company was in a graduated tax rate position. The principal reasons for the difference are as follows (in thousands):
|  | 2020 |  |  | 2019 |  |  | 2018 |
Expected income taxes |  | $ | 12,546 |  |  | $ | 13,286 |  |  | $ | 10,186 |
Effects of: |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt income from bank owned life insurance |  |  | (363 | ) |  |  | (563 | ) |  |  | (283 | )
Other tax-exempt income |  |  | (1,758 | ) |  |  | (1,701 | ) |  |  | (1,598 | )
Nondeductible interest expense |  |  | 45 |  |  |  | 70 |  |  |  | 43 |
State taxes, net of federal taxes |  |  | 4,325 |  |  |  | 4,280 |  |  |  | 3,354 |
Other items |  |  | (158 | ) |  |  | 116 |  |  |  | 218 |
Adjustment of deferred tax assets and liabilities for enacted change in tax laws |  |  | — |  |  |  | — |  |  |  | — |
Effect of marginal tax rate |  |  | (165 | ) |  |  | (165 | ) |  |  | (15 | )
Total |  | $ | 14,472 |  |  | $ | 15,323 |  |  | $ | 11,905 |
Tax expense recorded by the Company during 2020, 2019 and 2018 did not include any interest or penalties. Tax returns filed with the Internal Revenue Service and Illinois Department of Revenue are subject to review by law under a three-year statute of limitations. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2017. The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 are presented below (in thousands):
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 11,858 |  |  | $ | 7,512 |
Deferred compensation |  |  | 3,486 |  |  |  | 3,487 |
Supplemental retirement |  |  | 126 |  |  |  | 133 |
Core deposit premium and other intangible assets |  |  | 948 |  |  |  | 889 |
Deferred loan costs |  |  | 987 |  |  |  | — |
Stock compensation expense |  |  | 80 |  |  |  | 54 |
Deferred revenue |  |  | 460 |  |  |  | 521 |
Acquisition costs |  |  | 265 |  |  |  | 265 |
Other |  |  | 682 |  |  |  | 749 |
Total gross deferred tax assets |  |  | 18,892 |  |  |  | 13,610 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Deferred expenses |  |  | 108 |  |  |  | 13 |
Intangibles amortization |  |  | 5,034 |  |  |  | 4,584 |
Prepaid expenses |  |  | 863 |  |  |  | 754 |
FHLB stock dividend |  |  | 23 |  |  |  | 23 |
Depreciation |  |  | 2,566 |  |  |  | 2,500 |
Purchase accounting |  |  | 7,937 |  |  |  | 7,906 |
Accumulated accretion |  |  | 135 |  |  |  | 304 |
Mortgage servicing rights |  |  | 148 |  |  |  | 411 |
Available-for-sale investment securities |  |  | 6,941 |  |  |  | 3,415 |
Total gross deferred tax liabilities |  |  | 23,755 |  |  |  | 19,910 |
Net deferred tax assets (liabilities) |  | $ | (4,863 | ) |  | $ | (6,300 | )
Net deferred tax assets are recorded in other assets on the consolidated balance sheets, while net deferred tax liabilities are recorded in other liabilities. No valuation allowance related to deferred tax assets was recorded at December 31, 2020 and 2019 as management believes it is more likely than not that the deferred tax assets will be fully realized.

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- 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
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