XML 48 R35.htm IDEA: XBRL DOCUMENT v3.19.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The current and deferred components of the income tax provision for each of the two years ended December 31 are as follows:

(in thousands)	2018			2017
Current tax provision
Federal	$	7,289		$	5,379
State	4,722			2,623
Total current	12,011			8,002
Deferred tax (benefit) provision
Federal	(898		)	4,444
State	(318		)	416
Total deferred	(1,216		)	4,860
Total income tax provision	$	10,795		$	12,862

Schedule of Deferred Tax Assets and Liabilities

The following table shows the tax effect of our cumulative temporary differences as of December 31:

(in thousands)	2018			2017
Deferred tax assets:
Allowance for loan losses and off-balance sheet credit commitments	$	4,960		$	4,945
Net operating loss carryforwards	2,271			2,629
Net unrealized loss on securities available-for-sale	1,800			1,405
Deferred compensation plan and salary continuation plan	1,940			1,744
State franchise tax	993			557
Accrued but unpaid expenses	1,153			212
Fair value adjustment on acquired loans	364			570
Deferred rent and other lease incentives	224			328
Depreciation and disposals on premises and equipment	584			632
Stock-based compensation	517			463
Interest received on non-accrual loans	114			130
Other	215			266
Total gross deferred tax assets	15,135			13,881
Deferred tax liabilities:
Deferred loan origination costs and fees	(2,360		)	(2,153		)
Unaccreted discount on subordinated debentures	(439		)	(742		)
Core deposit intangible assets	(1,647		)	(1,919		)
Accretion on investment securities	(67		)	(56		)
Other	(204		)	(221		)
Total gross deferred tax liabilities	(4,717		)	(5,091		)
Net deferred tax assets	$	10,418		$	8,790

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate for 2018 and 2017 differs from the current federal statutory income tax rate as follows:

	2018		2017
Federal statutory income tax rate	21.0	%	35.0	%
Increase (decrease) due to:
California franchise tax, net of federal tax benefit	8.0	%	6.9	%
Write down of federal deferred tax assets, net 1	—	%	10.5	%
Tax exempt interest on municipal securities and loans	(2.4	)%	(6.1	)%
Tax exempt earnings on bank owned life insurance	(0.4	)%	(1.0	)%
Non-deductible acquisition related expenses	—	%	0.8	%
Low income housing and qualified zone academy bond tax credits	(0.5	)%	(0.4	)%
Stock-based compensation excess tax benefit	(0.6	)%	(0.3	)%
Other	(0.2	)%	(0.8	)%
Effective Tax Rate	24.9	%	44.6	%

¹ Due to the enactment of the Tax Cuts and Jobs Act of 2017, which reduced the federal corporate income tax rate to 21% for tax years beginning on or after January 1, 2018, we wrote down net deferred tax assets as of December 22, 2017 by $3.0 million recorded in income tax expense in 2017.

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

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

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration