Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31, 2021 and 2020, were as follows:

	Years Ended December 31,
(in thousands)	2021		2020
Current tax expense	$	7,881	$	6,193
Deferred tax expense (benefit)	(773)		130
Income tax expense	$	7,108	$	6,323

Schedule of Effective Income Tax Rate Reconciliation

The source and tax effect of items reconciling income tax expense to the amount computed by applying the federal income tax rates in effect to income before income tax expense for the years ended December 31, 2021 and 2020, are as follows:

	December 31,
	2021				2020
(dollars in thousands)	Amount		Percent		Amount		Percent
Income before income tax expense	$	40,060	100.0	%	$	34,468	100.0	%
U.S. federal income tax expense	8,413		21.0	%	7,238		21.0	%
Nontaxable income	(1,347)		(3.4)	%	(1,045)		(3.0)	%
Nondeductible expenses	38		0.1	%	45		0.1	%
Other	4		—	%	85		0.2	%
Income tax expense	$	7,108	17.7	%	$	6,323	18.3	%

Schedule of Deferred Tax Assets (Liabilities)

The deferred tax assets (liabilities) were comprised of the following as of December 31, 2021 and 2020:

	December 31,
(in thousands)	2021		2020
Depreciation	$	(1,964)	$	(1,953)
Unrealized gain on securities	—		(1,840)
FHLB of Dallas stock dividends	(20)		(19)
Gross deferred tax liability	(1,984)		(3,812)
Allowance for loan losses	4,025		3,400
Allowance for operational losses	57		74
Health insurance self fund	94		211
Deferred compensation	554		570
Unrealized loss on securities	1,003		—
Equity security valuation	33		(5)
Advance payment	350		150
Accrued bonus	368		220
Other	100		139
Gross deferred tax asset	6,584		4,759
Net deferred tax asset (liability)	$	4,600	$	947