Income Taxes (Table)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense in the consolidated statements of income for the years ended December 31, 2020 and 2019, includes the following (in thousands):

	2020		2019
Current tax expense
Federal	$	6,330	$	5,143
State		1,447		974
Deferred tax expense related to:
Federal		(991)		678
State		(228)		102
Total income tax expense	$	6,558	$	6,897

Schedule of Effective Income Tax Rate Reconciliation

The income tax expense is different from the expected tax expense computed by multiplying income before income tax expense by the statutory income tax rate of 21%. The reasons for this difference are as follows (in thousands):

	2020		2019
Federal income tax expense computed at the statutory rate	$	6,487	$	7,024
State income taxes, net of federal tax benefit		923		872
Nondeductible acquisition expenses		109		—
Tax-exempt interest		(555)		(469)
Tax benefit from stock options		(14)		(24)
Other		(392)		(506)
Total income tax expense	$	6,558	$	6,897

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset as of December 31, 2020 and 2019, were as follows (in thousands):

	2020		2019
Deferred tax assets:
Allowance for loan losses	$	4,744	$	2,688
Fair value adjustments		3,854		4,098
Unrealized losses on securities		—		—
Unrealized losses on hedges or derivative securities		278		79
Other real estate owned		523		25
Deferred compensation		1,103		976
Lease liability		1,248		1,438
Federal net operating loss carryforward		—		221
Other		82		442
Total deferred tax assets		11,832		9,967
Deferred tax liabilities:
Accumulated depreciation		1,374		1,610
Core deposit intangible		3,112		2,971
Right of use asset		1,240		1,435
Unrealized gains on available-for-sale securities		1,051		139
Other		663		332
Total deferred tax liabilities		7,440		6,487
Net deferred tax asset	$	4,392	$	3,480