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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Summarized Income Tax (Benefit) Expense | The Company files federal income tax returns on a calendar year basis. Income tax expense for the years indicated is summarized as follows:
(dollars in thousands) |  | 2019 |  | 2018 |  | 2017
Current |  | $ | 6,123 |  |  | $ | 5,747 |  |  | $ | 7,260 |
Deferred |  | 137 |  |  | 2,137 |  |  | 2,512 |
NMTC |  | (400) |  |  | (400) |  |  | — |
Impact of Tax Cuts and Jobs Act |  | — |  |  | (789) |  |  | 2,721 |
Total income tax expense |  | $ | 5,860 |  |  | $ | 6,695 |  |  | $ | 12,493 |
Summarized Deferred Tax Asset | The components of the Company’s net deferred tax asset, which is included in accrued interest receivable and other assets in the accompanying Statement of Financial Condition as of December 31 of the years indicated are as follows:
(dollars in thousands) |  | 2019 |  | 2018
Deferred tax assets: |  |  |  |
Provision for loan losses |  | $ | 3,752 |  |  | $ | 3,433 |
Discount on purchased loans |  | 1,842 |  |  | 2,916 |
Salary continuation plan |  | 678 |  |  | 656 |
Mortgage servicing rights |  | 95 |  |  | 115 |
Deferred compensation |  | 52 |  |  | 107 |
Stock-based compensation |  | 264 |  |  | 340 |
Unrealized loss on securities available for sale |  | — |  |  | 586 |
Other |  | 101 |  |  | 102 |
Deferred tax assets |  | $ | 6,784 |  |  | $ | 8,255 |
Deferred tax liabilities: |  |  |  |
FHLB stock dividends |  | $ | (108) |  |  | $ | (162) |
Accumulated depreciation |  | (2,974) |  |  | (3,298) |
Intangible assets |  | (858) |  |  | (1,135) |
Premium on investment securities acquired |  | — |  |  | (88) |
Unrealized gain on securities available for sale |  | (184) |  |  | — |
NMTC |  | (48) |  |  | (24) |
Other |  | (96) |  |  | (161) |
Deferred tax liabilities |  | (4,268) |  |  | (4,868) |
Net deferred tax asset |  | $ | 2,516 |  |  | $ | 3,387 |
Provision for Federal Income Taxes | For the years ended December 31, 2019, 2018 and 2017, the Company’s provision for federal income taxes differed from the amount computed by applying the federal income tax statutory rates of 21%, 21% and 35%, respectively, on income from operations as indicated in the following analysis:
(dollars in thousands) |  | 2019 |  | 2018 |  | 2017
Federal tax based on statutory rate |  | $ | 7,089 |  |  | $ | 8,023 |  |  | $ | 10,242 |
State tax based on statutory rate |  | 34 |  |  | 82 |  |  | 54 |
(Decrease) increase resulting from: |  |  |  |  |  |
NMTC |  | (400) |  |  | (400) |  |  | — |
Effect of tax-exempt income |  | (128) |  |  | (171) |  |  | (234) |
Changes in the cash surrender value of bank owned life insurance |  | (435) |  |  | (138) |  |  | (173) |
Nondeductible merger-related expenses |  | — |  |  | — |  |  | 129 |
Nondeductible share based compensation expense |  | 177 |  |  | 191 |  |  | 374 |
Exercise of stock options |  | (599) |  |  | (131) |  |  | (656) |
DTA adjustment – impact of Tax Act |  | — |  |  | (789) |  |  | 2,721 |
Other |  | 122 |  |  | 28 |  |  | 36 |
Income tax expense |  | $ | 5,860 |  |  | $ | 6,695 |  |  | $ | 12,493 |
Effective tax rate |  | 17.3 | % |  | 17.5 | % |  | 42.6 | %

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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