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INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2021
INCOME TAXES  
Schedule of allocation of federal and state income taxes between current and deferred portions

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2021

    

2020

    

2021

    

2020

(dollars in thousands)

Current

Federal

$

2,773

$

977

$

5,943

$

2,698

State

1,540

637

3,238

1,625

Total current

4,313

1,614

9,181

4,323

Deferred

Federal

311

580

768

123

State

141

283

369

62

Total deferred

 

452

 

863

 

1,137

 

185

Income tax expense

$

4,765

$

2,477

$

10,318

$

4,508

Schedule of effective income tax rate reconciliation

    

Three Months Ended June 30, 

    

    

2021

    

2020

    

Amount

    

Percentage

Amount

    

Percentage

(dollars in thousands)

Federal income tax, at statutory rate

$

3,881

21.0

%

$

2,078

21.0

%

Increase (decrease) resulting from:

Federally tax exempt interest income

(353)

(1.9)

(370)

(3.7)

State taxes, net of federal benefit

 

1,303

 

7.1

727

 

7.3

Other

 

(66)

 

(0.4)

42

 

0.4

Income tax expense

$

4,765

 

25.8

%

$

2,477

 

25.0

%

Six Months Ended June 30, 

2021

2020

Amount

Percentage

Amount

Percentage

(dollars in thousands)

Federal income tax, at statutory rate

$

8,249

21.0

%

$

3,811

21.0

%

Increase (decrease) resulting from:

Federally tax exempt interest income

(720)

(1.8)

(727)

(4.0)

State taxes, net of federal benefit

2,817

 

7.2

1,358

 

7.5

Other

(28)

 

(0.1)

66

 

0.3

Income tax expense

$

10,318

 

26.3

%

$

4,508

 

24.8

%

Schedule of components of the net deferred tax asset (liability)

June 30, 

December 31, 

2021

2020

(dollars in thousands)

Deferred tax assets

    

 

Allowance for loan losses

$

7,477

 

$

9,046

Compensation related

1,935

 

2,301

Deferred loan fees

2,118

1,595

Nonaccrual interest

 

510

660

Foreclosed assets

 

55

45

Goodwill

 

237

336

Other

 

1,208

1,011

Total deferred tax assets

 

13,540

14,994

Deferred tax liabilities

Fixed asset depreciation

 

4,217

4,361

Mortgage servicing rights

 

2,071

1,692

Other purchase accounting adjustments

1,075

1,115

Intangible assets

467

580

Prepaid assets

 

407

685

Net unrealized gain on debt securities

 

2,566

6,569

Other

 

358

370

Total deferred tax liabilities

 

11,161

15,372

Net deferred tax asset (liability)

$

2,379

$

(378)