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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Taxes |
Income Taxes | NOTE 14: Income Taxes ​ Principal components of income tax expense as reflected in the Consolidated Statements of Income are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
(Dollars in thousands) |  | 2020 |  | 2019 |  | 2018 |
Current taxes | ​ | $ | 7,612 | ​ | $ | 4,728 | ​ | $ | 3,889 | ​
Deferred taxes | ​ |  | (817) | ​ |  | 354 | ​ |  | 632 | ​
​ | ​ | $ | 6,795 | ​ | $ | 5,082 | ​ | $ | 4,521 | ​
​ Income tax expense for the years ended December 31, 2020, 2019 and 2018 differed from the federal statutory rate applied to income before income taxes for the following reasons: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ | ​ | ​ | 2020 | ​ | ​ | 2019 | ​ | ​ | 2018 | ​
(Dollars in thousands) | ​ | Amount | ​ | Percent | ​ | Amount | ​ | Percent | ​ | Amount | ​ | Percent |
Income tax at statutory rates | ​ | $ | 6,136 |  | 21.0 | % | $ | 5,026 |  | 21.0 | % | $ | 4,734 |  | 21.0 | %
State income taxes | ​ |  | 1,449 |  | 5.0 | ​ |  | 695 |  | 2.9 | ​ |  | 575 |  | 2.6 | ​
Tax-exempt interest income | ​ |  | (493) |  | (1.7) | ​ |  | (453) |  | (1.9) | ​ |  | (574) |  | (2.5) | ​
Excess compensation | ​ | ​ | 328 | ​ | 1.1 | ​ | ​ | — | ​ | — | ​ | ​ | — | ​ | — | ​
Change in tax law | ​ | ​ | (326) | ​ | (1.1) | ​ | ​ | — | ​ | — | ​ | ​ | — | ​ | — | ​
Income from bank-owned life insurance | ​ | ​ | (107) | ​ | (0.4) | ​ | ​ | (149) | ​ | (0.6) | ​ | ​ | (89) | ​ | (0.4) | ​
Investments in qualified housing projects | ​ | ​ | (82) | ​ | (0.3) | ​ | ​ | (93) | ​ | (0.4) | ​ | ​ | (85) | ​ | (0.4) | ​
Share based compensation | ​ |  | (77) |  | (0.3) | ​ |  | (126) |  | (0.5) | ​ | ​ | (103) |  | (0.5) | ​
Merger related expenses | ​ | ​ | 29 | ​ | 0.1 | ​ | ​ | 96 | ​ | 0.4 | ​ | ​ | — | ​ | — | ​
Other | ​ |  | (62) |  | (0.2) | ​ |  | 86 |  | 0.3 | ​ |  | 63 |  | 0.3 | ​
​ | ​ | $ | 6,795 |  | 23.2 | % | $ | 5,082 |  | 21.2 | % | $ | 4,521 |  | 20.1 | %
​ The CARES Act, enacted in March 2020, included a provision that allowed net operating losses generated in years prior to 2020 to be carried back for up to five tax years. Previously, tax law only allowed for net operating losses to be carried forward to future tax years. During 2020 the Corporation recognized income tax benefits of $326,000 related to net operating losses generated by Peoples in 2019, which were able to be applied to years prior to 2018 at higher income tax rates than the current statutory rate as a result of the CARES Act. ​ The Corporation’s net deferred income taxes totaled $13.56 million and $11.22 million at December 31, 2020 and 2019, respectively. The tax effects of each type of significant item that gave rise to deferred taxes are: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |
(Dollars in thousands) | ​ | 2020 | ​ | 2019 |
Deferred tax asset | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowances for loan losses and OREO losses | ​ | $ | 9,743 | ​ | $ | 8,227 | ​
Nonqualified defined contribution plan | ​ |  | 3,595 | ​ |  | 3,247 | ​
Lease liabilities | ​ | ​ | 1,906 | ​ | ​ | 667 | ​
Fair value adjustments related to business combinations | ​ |  | 1,716 | ​ |  | 1,053 | ​
Share-based compensation | ​ |  | 920 | ​ |  | 863 | ​
Reserve for indemnification losses | ​ |  | 879 | ​ |  | 645 | ​
Accrued expenses | ​ | ​ | 779 | ​ | ​ | 426 | ​
Cash flow hedges | ​ |  | 471 | ​ |  | 24 | ​
Other | ​ |  | 1,364 | ​ |  | 1,359 | ​
Deferred tax asset | ​ |  | 21,373 | ​ |  | 16,511 | ​
Deferred tax liability | ​ | ​ | ​ | ​ | ​ | ​ | ​
Goodwill and other intangible assets | ​ |  | (3,164) | ​ |  | (2,818) | ​
Right of use assets | ​ | ​ | (1,868) | ​ | ​ | (664) | ​
Depreciation | ​ |  | (1,272) | ​ |  | (972) | ​
Net unrealized gain on securities available for sale | ​ |  | (1,169) | ​ |  | (415) | ​
Defined benefit plan | ​ |  | (345) | ​ |  | (423) | ​
Deferred tax liability | ​ |  | (7,818) | ​ |  | (5,292) | ​
Net deferred tax asset | ​ | $ | 13,555 | ​ | $ | 11,219 | ​
​ The Corporation files income tax returns in the U.S. federal jurisdiction and several states. With few exceptions, the Corporation is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 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://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
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