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

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2021

    

2020

    

2021

    

2020

(dollars in thousands)

Current

Federal

$

2,330

$

2,921

$

8,273

$

5,619

State

1,290

1,593

4,528

3,218

Total current

3,620

4,514

12,801

8,837

Deferred

Federal

846

(542)

1,614

(419)

State

426

(271)

795

(209)

Total deferred

 

1,272

 

(813)

 

2,409

 

(628)

Income tax expense

$

4,892

$

3,701

$

15,210

$

8,209

Schedule of effective income tax rate reconciliation

    

Three Months Ended September 30, 

    

    

2021

    

2020

    

Amount

    

Percentage

Amount

    

Percentage

(dollars in thousands)

Federal income tax, at statutory rate

$

3,907

21.0

%

$

2,995

21.0

%

Increase (decrease) resulting from:

Federally tax exempt interest income

(352)

(1.9)

(372)

(2.6)

State taxes, net of federal benefit

 

1,353

 

7.3

1,039

 

7.3

Other

 

(16)

 

(0.1)

39

 

0.2

Income tax expense

$

4,892

 

26.3

%

$

3,701

 

25.9

%

Nine Months Ended September 30, 

2021

2020

Amount

Percentage

Amount

Percentage

(dollars in thousands)

Federal income tax, at statutory rate

$

12,156

21.0

%

$

6,806

21.0

%

Increase (decrease) resulting from:

Federally tax exempt interest income

(1,072)

(1.8)

(1,099)

(3.4)

State taxes, net of federal benefit

4,170

 

7.2

2,397

 

7.4

Other

(44)

 

(0.1)

105

 

0.3

Income tax expense

$

15,210

 

26.3

%

$

8,209

 

25.3

%

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

September 30, 

December 31, 

2021

2020

(dollars in thousands)

Deferred tax assets

    

 

Allowance for loan losses

$

7,014

 

$

9,046

Compensation related

2,032

 

2,301

Deferred loan fees

1,392

1,595

Nonaccrual interest

 

494

660

Foreclosed assets

 

70

45

Goodwill

 

189

336

Other

 

995

1,011

Total deferred tax assets

 

12,186

14,994

Deferred tax liabilities

Fixed asset depreciation

 

3,944

4,361

Mortgage servicing rights

 

2,083

1,692

Other purchase accounting adjustments

1,050

1,115

Intangible assets

417

580

Prepaid assets

 

546

685

Net unrealized gain on debt securities

 

1,004

6,569

Other

 

500

370

Total deferred tax liabilities

 

9,544

15,372

Net deferred tax asset (liability)

$

2,642

$

(378)