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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Taxes  
Schedule of principal components of income tax expense

Year Ended December 31, 

 

(Dollars in thousands)

    

2021

    

2020

    

2019

 

Current taxes

$

9,049

$

7,612

$

4,728

Deferred taxes

 

(90)

 

(817)

 

354

$

8,959

$

6,795

$

5,082

Schedule of reconciliation of effective income tax rate to income tax provision

Year Ended December 31, 

 

2021

2020

2019

(Dollars in thousands)

Amount

Percent

Amount

Percent

Amount

Percent

 

Income tax at statutory rates

$

7,997

 

21.0

%  

$

6,136

21.0

%  

$

5,026

 

21.0

%

State income taxes

 

1,340

 

3.5

 

1,449

5.0

 

695

 

2.9

Tax-exempt interest income

 

(396)

 

(1.0)

 

(493)

(1.7)

 

(453)

 

(1.9)

Excess compensation

571

1.5

328

1.1

Change in tax law

(326)

(1.1)

Income from bank-owned life insurance

(110)

(0.3)

(107)

(0.4)

(149)

(0.6)

Investments in qualified housing projects

(48)

(0.1)

(82)

(0.3)

(93)

(0.4)

Share based compensation

 

(83)

 

(0.2)

 

(77)

(0.3)

(126)

 

(0.5)

Contribution of real property

(107)

(0.3)

Merger related expenses

29

0.1

96

0.4

Other

 

(205)

 

(0.5)

 

(62)

(0.2)

 

86

 

0.3

$

8,959

 

23.6

%  

$

6,795

 

23.2

%  

$

5,082

 

21.2

%

Schedule of deferred tax assets and liabilities

    

December 31, 

 

(Dollars in thousands)

2021

2020

 

Deferred tax assets

Allowances for loan losses and OREO losses

$

9,960

$

9,743

Nonqualified defined contribution plan

 

3,948

 

3,595

Lease liabilities

2,057

1,906

Fair value adjustments related to business combinations

 

1,119

 

1,716

Share-based compensation

 

752

 

920

Reserve for indemnification losses

 

821

 

879

Accrued expenses

352

779

Cash flow hedges

 

158

 

471

Other

 

1,275

 

1,364

Deferred tax assets

 

20,442

 

21,373

Deferred tax liabilities

Goodwill and other intangible assets

 

(3,114)

 

(3,164)

Right of use assets

(1,938)

(1,868)

Depreciation

 

(989)

 

(1,272)

Net unrealized gain on securities available for sale

 

(116)

 

(1,169)

Defined benefit plan

 

(677)

 

(345)

Deferred tax liabilities

 

(6,834)

 

(7,818)

Net deferred tax assets

$

13,608

$

13,555