XML 49 R21.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following is a summary of income tax expense for the years ended December 31, 2018, 2017, and 2016:
| 2018 |  | 2017 |  | 2016
Current – federal | $ | 7,520 |  |  | $ | 8,978 |  |  | $ | 6,181 |
Current – state | 66 |  |  | 29 |  |  | (33 | )
Deferred – federal | (1,076 | ) |  | 376 |  |  | 1,023 |
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | 0 |  |  | 3,009 |  |  | 0 |
Income tax expense | $ | 6,510 |  |  | $ | 12,392 |  |  | $ | 7,171 |
The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:
| 2018 |  | % |  | 2017 |  | % |  | 2016 |  | %
Tax at statutory rate | $ | 8,448 |  |  | 21.0 |  |  | $ | 12,688 |  |  | 35.0 |  |  | $ | 9,699 |  |  | 35.0 |
Tax exempt income, net | (1,403 | ) |  | (3.5 | ) |  | (1,899 | ) |  | (5.2 | ) |  | (2,054 | ) |  | (7.4 | )
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | 0 |  |  | 0.0 |  |  | 3,009 |  |  | 8.3 |  |  | 0 |  |  | 0.0 |
Bank owned life insurance | (296 | ) |  | (0.7 | ) |  | (581 | ) |  | (1.6 | ) |  | (379 | ) |  | (1.3 | )
Merger costs | 0 |  |  | 0.0 |  |  | 0 |  |  | 0.0 |  |  | 170 |  |  | 0.6 |
Other | (239 | ) |  | (0.6 | ) |  | (825 | ) |  | (2.3 | ) |  | (265 | ) |  | (1.0 | )
Income tax expense | $ | 6,510 |  |  | 16.2 |  |  | $ | 12,392 |  |  | 34.2 |  |  | $ | 7,171 |  |  | 25.9 |
Income tax expense for the year ended December 31, 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act of 2017, which was enacted on December 22, 2017. Accordingly, the Corporation recognized additional tax expense totaling $3,009 in 2017, as detailed in the table above. The following table sets forth deferred taxes as of December 31, 2018 and 2017. As a result of the Tax Cuts and Jobs Act (discussed below), deferred taxes as of December 31, 2018 and 2017 are based on the enacted U.S. statutory federal income tax rate of 21%.
| 2018 |  | 2017
Deferred tax assets: |  |  |
Allowance for loan losses | $ | 3,088 |  |  | $ | 2,840 |
Fair value adjustments – business combination | 966 |  |  | 1,135 |
Deferred compensation | 2,056 |  |  | 1,903 |
Net operating loss carryover | 0 |  |  | 71 |
Post-retirement benefits | 836 |  |  | 892 |
Unrealized loss on interest rate swap | 42 |  |  | 34 |
Nonaccrual loan interest | 589 |  |  | 390 |
Accrued expenses | 1,254 |  |  | 699 |
Deferred fees and costs | 588 |  |  | 598 |
Unrealized loss on securities available for sale | 940 |  |  | 0 |
Other | 366 |  |  | 344 |
| 10,725 |  |  | 8,906 |
Deferred tax liabilities: |  |  |
Unrealized gain on securities available for sale | 0 |  |  | 126 |
Premises and equipment | 1,459 |  |  | 1,413 |
Unrealized gain on trading securities | 63 |  |  | 156 |
Intangibles – section 197 | 2,414 |  |  | 2,593 |
Mortgage servicing rights | 314 |  |  | 291 |
Other | 178 |  |  | 78 |
| 4,428 |  |  | 4,657 |
Net deferred tax asset | $ | 6,297 |  |  | $ | 4,249 |
At December 31, 2018 and 2017, the Corporation had no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2018 and 2017, there were no amounts accrued for interest and/or penalties and no amounts recorded as expense for the years ending December 31, 2018, 2017, and 2016. The Corporation and its subsidiaries are subject to U.S. federal income tax, as well as various filing various state returns. The Corporation is no longer subject to examination by the taxing authorities for years prior to 2015. Tax years 2015 through 2018 are open to examination. The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations, however, such changes do not currently impact the Corporation.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration