XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Note 14 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 14. Income Taxes Income tax expense is comprised of current and deferred, federal and state income taxes on the Company’s pre-tax earnings. The following table presents the components of the income tax provision for the periods indicated:
|  | Year Ended December 31, |
(Amounts in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Current tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,546 |  |  | $ | 10,048 |  |  | $ | 9,603 |
State |  |  | 1,563 |  |  |  | 1,643 |  |  |  | 1,554 |
Total current tax expense |  |  | 10,109 |  |  |  | 11,691 |  |  |  | 11,157 |
Deferred tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,677 |  |  |  | (1,266 | ) |  |  | (152 | )
State |  |  | 574 |  |  |  | (239 | ) |  |  | (11 | )
Total deferred tax expense (benefit) |  |  | 5,251 |  |  |  | (1,505 | ) |  |  | (163 | )
Total income tax expense |  | $ | 15,360 |  |  | $ | 10,186 |  |  | $ | 10,994 |
The Company’s effective tax rate, income tax as a percent of pre-tax income, may vary significantly from the statutory rate due to permanent differences and available tax credits. Permanent differences are income and expense items excluded by law in the calculation of taxable income. The Company’s most significant permanent differences generally include interest income on municipal securities and increases in the cash surrender value of life insurance policies. The following table reconciles the Company’s income tax expense to the amount computed by applying the federal statutory tax rate to pre-tax income for the periods indicated:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal income tax at the statutory rate |  | $ | 13,971 |  |  |  | 21.00 | % |  | $ | 9,683 |  |  |  | 21.00 | % |  | $ | 10,457 |  |  |  | 21.00 | %
State income tax, net of federal benefit |  |  | 2,076 |  |  |  | 3.12 | % |  |  | 1,109 |  |  |  | 3.12 | % |  |  | 1,220 |  |  |  | 3.12 | %
|  |  | 16,047 |  |  |  | 24.12 | % |  |  | 10,792 |  |  |  | 24.12 | % |  |  | 11,677 |  |  |  | 24.12 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest income |  |  | (340 | ) |  |  | (0.51 | )% |  |  | (500 | ) |  |  | (1.08 | )% |  |  | (637 | ) |  |  | (1.28 | )%
Excess tax benefits |  |  | (133 | ) |  |  | (0.20 | )% |  |  | 42 |  |  |  | 0.09 | % |  |  | (71 | ) |  |  | (0.14 | )%
Bank owned life insurance |  |  | (225 | ) |  |  | (0.34 | )% |  |  | (139 | ) |  |  | (0.30 | )% |  |  | (249 | ) |  |  | (0.50 | )%
Other items, net |  |  | 11 |  |  |  | 0.02 | % |  |  | (9 | ) |  |  | (0.74 | )% |  |  | 274 |  |  |  | 0.04 | %
Income tax at the effective tax rate |  | $ | 15,360 |  |  |  | 23.09 | % |  | $ | 10,186 |  |  |  | 22.09 | % |  | $ | 10,994 |  |  |  | 22.24 | %
Deferred taxes derived from continuing operations reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for tax purposes. The following table presents the significant components of the net deferred tax asset as of the dates indicated:
|  | December 31, |
(Amounts in thousands) |  | 2021 |  |  | 2020 |
Deferred tax assets |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 6,647 |  |  | $ | 6,128 |
Unrealized asset losses |  |  | 482 |  |  |  | 545 |
Purchase accounting |  |  | 455 |  |  |  | 2,559 |
FDIC assisted transactions |  |  | 810 |  |  |  | 1,685 |
Intangible assets |  |  | (318 | ) |  |  | 217 |
Deferred compensation assets |  |  | 4,360 |  |  |  | 4,048 |
Federal net operating loss carryforward |  |  | 2,179 |  |  |  | 4,093 |
Deferred loan fees |  |  | 2,350 |  |  |  | 2,401 |
Other |  |  | 1,930 |  |  |  | 1,816 |
Total deferred tax assets |  |  | 18,895 |  |  |  | 23,492 |
Deferred tax liabilities |  |  |  |  |  |  |  |
FDIC indemnification asset |  |  | — |  |  |  | 286 |
Fixed assets |  |  | (823 | ) |  |  | 2,450 |
Odd days interest deferral |  |  | (3,324 | ) |  |  | 1,482 |
Unrealized gains on available for sale securities |  |  | (4 | ) |  |  | 257 |
Other |  |  | (592 | ) |  |  | 287 |
Total deferred tax liabilities |  |  | (4,743 | ) |  |  | 4,762 |
Net deferred tax asset |  | $ | 14,152 |  |  | $ | 18,730 |
The Company had no unrecognized tax benefits or accrued interest or penalties as of December 31, 2021 or 2020. The Company had no deferred tax valuation allowance recorded as of December 31, 2021 or 2020, as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and various state tax departments for the years ended December 31, 2018 through 2020.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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://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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration