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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Net Deferred Tax Asset | Significant components of the Corporation’s net deferred tax asset at December 31, 2019 and 2018 are shown below.
(Dollars in thousands) |  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan and lease losses |  | $ | 1,998 |  |  | $ | 1,763 |
Loan fees |  |  | 227 |  |  |  | 136 |
Deferred compensation |  |  | 581 |  |  |  | 508 |
Benefit plans |  |  | 127 |  |  |  | 134 |
Unrealized loss on securities |  |  | 34 |  |  |  | 862 |
Sale/leaseback adjustment |  |  | — |  |  |  | 66 |
Lease adjustments |  |  | 231 |  |  |  | — |
Business combination adjustments |  |  | 164 |  |  |  | 1,692 |
Acquired NOL, Section 1231, and charitable contribution carryforwards |  |  | 862 |  |  |  | 1,391 |
Acquired AMT carryforward |  |  | 860 |  |  |  | 1,433 |
Other |  |  | 114 |  |  |  | 128 |
|  |  | 5,198 |  |  |  | 8,113 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (717 | ) |  |  | (1,073 | )
Bond accretion |  |  | (23 | ) |  |  | (29 | )
Goodwill and intangibles |  |  | (354 | ) |  |  | (348 | )
Prepaid expenses |  |  | (405 | ) |  |  | (515 | )
Business combination adjustments |  |  | (240 | ) |  |  | (948 | )
Benefit plans |  |  | (649 | ) |  |  | (459 | )
Other |  |  | — |  |  |  | (45 | )
|  |  | (2,388 | ) |  |  | (3,417 | )
Deferred tax asset, net |  | $ | 2,810 |  |  | $ | 4,696 |
Provision for Income Taxes | The provision for income taxes consists of the following:
(Dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Current tax provision |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,875 |  |  | $ | 812 |  |  | $ | 2,672 |
State |  |  | 185 |  |  |  | — |  |  |  | — |
Total current tax provision |  |  | 3,060 |  |  |  | 812 |  |  |  | 2,672 |
Deferred tax expense |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 665 |  |  |  | 1,317 |  |  | $ | 1,828 |
State |  |  | — |  |  |  | — |  |  |  | — |
Total deferred tax expense |  | $ | 665 |  |  |  | 1,317 |  |  |  | 1,828 |
Total provision for income taxes |  | $ | 3,725 |  |  | $ | 2,129 |  |  | $ | 4,500 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of federal income tax at the statutory rate of 21% for 2019 and 2018, and 34% for 2017 to Mid Penn's effective rate is as follows:
(Dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Provision at the expected statutory rate |  | $ | 4,499 |  |  | $ | 2,672 |  |  | $ | 3,940 |
Effect of tax-exempt income |  |  | (683 | ) |  |  | (704 | ) |  |  | (668 | )
Effect of investment in life insurance |  |  | (66 | ) |  |  | (60 | ) |  |  | (89 | )
State income taxes, net of federal tax benefit |  |  | 146 |  |  |  | — |  |  |  | — |
Nondeductible interest |  |  | 59 |  |  |  | 40 |  |  |  | 30 |
Low income housing partnership tax credits |  |  | (83 | ) |  |  | (168 | ) |  |  | (46 | )
Nondeductible merger and acquisition expense |  |  | — |  |  |  | 193 |  |  |  | 191 |
Rate change adjustment |  |  | — |  |  |  | — |  |  |  | 1,169 |
Other items |  |  | (147 | ) |  |  | 156 |  |  |  | (27 | )
Provision for income taxes |  | $ | 3,725 |  |  | $ | 2,129 |  |  | $ | 4,500 |

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