XML 31 R17.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The current and deferred components of income tax expense (benefit) were as follows:
For the years ended December 31, | 2020 |  | 2019 |  | 2018
Federal income tax |  |  |  |  |
Current | $ | 4,923,000 |  |  | $ | 3,978,000 |  |  | $ | 4,407,000 |
Deferred | (262,000) |  |  | 336,000 |  |  | (492,000) |
| 4,661,000 |  |  | 4,314,000 |  |  | 3,915,000 |
State franchise tax | 460,000 |  |  | 421,000 |  |  | 391,000 |
| $ | 5,121,000 |  |  | $ | 4,735,000 |  |  | $ | 4,306,000 |
The actual tax expense differs from the expected tax expense (computed by applying the applicable U.S. Federal corporate income tax rate to income before income taxes) as follows:
For the years ended December 31, | 2020 |  | 2019 |  | 2018
Expected tax expense | $ | 6,773,000 |  |  | $ | 6,355,000 |  |  | $ | 5,847,000 |
Non-taxable income | (1,808,000) |  |  | (1,749,000) |  |  | (1,699,000) |
State franchise tax, net of federal tax benefit | 348,000 |  |  | 332,000 |  |  | 309,000 |
Equity compensation | (43,000) |  |  | (45,000) |  |  | (55,000) |
Tax credits, net of amortization | (144,000) |  |  | (85,000) |  |  | (85,000) |
Other | (5,000) |  |  | (73,000) |  |  | (11,000) |
| $ | 5,121,000 |  |  | $ | 4,735,000 |  |  | $ | 4,306,000 |
Deferred tax assets and liabilities are classified in other assets and other liabilities in the consolidated balance sheets. No valuation allowance is deemed necessary for the deferred tax asset. Items that give rise to the deferred income tax assets and liabilities and the tax effect of each at December 31, 2020 and 2019 are as follows:
| 2020 |  | 2019
Allowance for loan losses | $ | 3,413,000 |  |  | $ | 2,444,000 |
OREO | 9,000 |  |  | — |
Accrued pension and post-retirement | 948,000 |  |  | 926,000 |
Unrealized loss on derivative instruments | 1,865,000 |  |  | 345,000 |
Unrealized loss on securities transferred from available for sale to held to maturity | 35,000 |  |  | 48,000 |
Restricted stock grants | 270,000 |  |  | 203,000 |
Core deposit intangible | 24,000 |  |  | 21,000 |
Investment in flow through entities | 82,000 |  |  | 55,000 |
Other assets | 87,000 |  |  | — |
Total deferred tax asset | 6,733,000 |  |  | 4,042,000 |
Net deferred loan costs | (1,894,000) |  |  | (1,669,000) |
Depreciation | (2,013,000) |  |  | (1,434,000) |
Unrealized gain on securities available for sale | (1,332,000) |  |  | (972,000) |
Goodwill | (161,000) |  |  | (120,000) |
Mortgage servicing rights | (411,000) |  |  | (325,000) |
Unrealized gain on derivative instruments | (554,000) |  |  | (371,000) |
Prepaid expense | (195,000) |  |  | (205,000) |
Total deferred tax liability | (6,560,000) |  |  | (5,096,000) |
Net deferred tax asset (liability) | $ | 173,000 |  |  | $ | (1,054,000) |
At December 31, 2020 and 2019, the Company held investments in four limited partnerships with related low income housing tax credits. The tax credits from the investments are estimated at $351,000 and $330,000 for the years ended December 31, 2020 and 2019, respectively, and are recorded as a reduction of income tax expense. Amortization of the investment in the limited partnership totaled $311,000 and $307,000 for the years ended December 31, 2020 and 2019, respectively, and is recognized as a component of income tax expense in the consolidated statements of income. The carrying value of these investments was $1,734,000 at December 31, 2020 and $1,951,000 at December 31, 2019, which is comprised of the Company's equity investment in the limited partnerships, and is recorded in other assets. FASB ASC Topic 740, "Income Taxes," defines the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company's financial statements. Topic 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service ("IRS") for the years ended December 31, 2017 through 2020.

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 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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration