Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31, were calculated using the asset and liability method as follows:


(Dollars in thousands)	2024		2023		2022
Current expense:
Federal	$	9,185	$	10,424	$	11,996
State	3,821		4,763		4,606
Total current expense	13,006		15,187		16,602
Deferred benefit:
Federal	71		(1,425)		(2,027)
State	(184)		(575)		(1,145)
Total deferred benefit	(113)		(2,000)		(3,172)
Total income tax expense	$	12,893	$	13,187	$	13,430

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate of 21% for 2024, 2023 and 2022 to income before taxes as follows:


(Dollars in thousands)	2024			2023			2022
Computed income tax expense at statutory rate	$	10,842		$	10,761		$	11,791
State income taxes, net of federal tax benefit	2,873			3,309			2,734
Tax-exempt income, net of disallowance	(680)			(758)			(804)
Bank-owned life insurance income, net	(420)			(265)			(252)

Tax expense (benefit) from stock compensation	60			(108)			(147)
New market tax credit	(135)			(135)			—
Other	353			383			108
Total income tax expense	$	12,893		$	13,187		$	13,430

Effective income tax rate	25.0		%	25.7		%	23.9		%

Schedule of Deferred Tax Assets and Liabilities

At December 31, the tax effects of each type of income and expense item that give rise to deferred taxes are as follows:


(Dollars in thousands)	2024		2023
Deferred tax asset:
Allowance for credit losses	$	18,826	$	18,278
Depreciation	3,678		3,524
Net unrealized losses on equity securities	—		51
Net unrealized losses on debt securities	22,922		23,105

Supplemental employee retirement plans	269		330
Deferred compensation and benefits	3,926		3,976
Non-accrual interest	1,800		1,608
Stock-based compensation expense	823		878
Lease liability	6,614		6,757


Other	101		6
Total	58,959		58,513

Deferred tax liability:
Goodwill	1,568		1,564
Net unrealized gains on equity securities	219		—

Deferred origination costs	1,238		848
Lease ROU asset	6,690		6,862
Other	148		73
Total	9,863		9,347

Net deferred tax asset	$	49,096	$	49,166