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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 18 – INCOME TAXES The provision for income taxes (credit) consists of the following:
|  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Current expense |  | $ | 7,626 |  |  | $ | 6,123 |  |  | $ | 9,451 |
Deferred expense (benefit) |  |  | (311 | ) |  |  | (409 | ) |  |  | 999 |
TOTALS |  | $ | 7,315 |  |  | $ | 5,714 |  |  | $ | 10,450 |
Effective tax rates differ from federal statutory rate of 21% in 2019 and 2018 and 35% in 2017 that were applied to income before income taxes due to the following:
|  |  | 2019 |  |  | 2018 |  |  | 2017 |
Statutory tax |  | $ | 9,046 |  |  | $ | 8,039 |  |  | $ | 11,606 |
Effect of nontaxable interest |  |  | (1,655 | ) |  |  | (1,439 | ) |  |  | (2,054 | )
Bank owned life insurance, net |  |  | (171 | ) |  |  | (182 | ) |  |  | (291 | )
Tax credits |  |  | 3 |  |  |  | 24 |  |  |  | (371 | )
Effect of nontaxable insurance premiums |  |  | (204 | ) |  |  | (188 | ) |  |  | (348 | )
Stock compensation |  |  | (100 | ) |  |  | (486 | ) |  |  | 0 |
Impact of enactment of federal tax reform |  |  | 0 |  |  |  | 0 |  |  |  | 1,793 |
Nondeductible acquisition costs |  |  | 0 |  |  |  | 0 |  |  |  | 70 |
Other |  |  | 396 |  |  |  | (54 | ) |  |  | 45 |
ACTUAL TAX |  | $ | 7,315 |  |  | $ | 5,714 |  |  | $ | 10,450 |
Deferred tax assets (liabilities) are comprised of the following:
|  |  | 2019 |  |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 3,032 |  |  | $ | 2,837 |
Net unrealized loss on securities available for sale |  |  | 0 |  |  |  | 1,040 |
Deferred and accrued compensation |  |  | 1,194 |  |  |  | 1,065 |
Deferred loan fees and costs |  |  | 584 |  |  |  | 580 |
Nonaccrual loan interest income |  |  | 429 |  |  |  | 432 |
Other-than-temporary impairment |  |  | 0 |  |  |  | 25 |
Restricted stock |  |  | 456 |  |  |  | 431 |
Lease liabilities |  |  | 669 |  |  |  | 0 |
Other |  |  | 46 |  |  |  | 94 |
Gross deferred tax assets |  | $ | 6,410 |  |  | $ | 6,504 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  | $ | (577 | ) |  | $ | (467 | )
Net unrealized gain on securities available for sale |  |  | (2,612 | ) |  |  | 0 |
Federal Home Loan Bank dividends |  |  | (658 | ) |  |  | (658 | )
Purchase accounting adjustments |  |  | (359 | ) |  |  | (552 | )
Mortgage servicing rights |  |  | (363 | ) |  |  | (308 | )
Prepaid expenses |  |  | (224 | ) |  |  | (204 | )
Lease right of use asset |  |  | (655 | ) |  |  | 0 |
Other |  |  | 0 |  |  |  | (12 | )
Gross deferred tax liabilities |  |  | (5,448 | ) |  |  | (2,201 | )
NET DEFERRED TAX ASSET |  | $ | 962 |  |  | $ | 4,303 |
No valuation allowance for deferred tax assets was recorded at December 31, 2019 and 2018. At December 31, 2019 and December 31, 2018, the Company had no unrecognized tax benefits recorded. The Company does not expect the amount of unrecognized tax benefits to significantly change within the next twelve months. The Company is subject to U.S. federal income tax. The Company is no longer subject to examination by the federal taxing authority for years prior to 2016. The tax years 2016—2018 remain open to examination by the U.S. taxing authority. In December of 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”), was signed into law. The Act included several provisions that affected the Company’s federal income tax expense, which reduced the federal income tax rate to 21% effective January 1, 2018. As a result of the rate reduction, the Company was required to re-measure, through income tax expense in the period of enactment, the deferred tax assets and liabilities using the enacted rate at which these items are expected to be recovered or settled. The re-measurement of the Company’s net deferred tax asset resulted in additional income tax expense of $1.8 million in 2017.

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- 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
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