Income Tax (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

An income tax expense reconciliation at the statutory rate to the Company’s actual income tax expense is shown below:

Three Months Ended

March 31,

2022

2021

(Dollars in thousands)

Computed at the statutory rate (

21

%)

$

4,413

$

3,138

Increase (decrease) resulting from

Tax-exempt income

(854)

(790)

Nondeductible expenses

82

50

State income taxes

696

496

Equity based compensation

(169)

14

Other adjustments

20

-

Actual tax expense

$

4,188

$

2,908

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences related to deferred taxes shown on the Consolidated Balance Sheets are presented below:

March 31, 2022

December 31, 2021

(Dollars in thousands)

Deferred tax assets

Net unrealized loss on securities available-for-sale

$

6,808

$

-

Allowance for credit losses

14,467

14,051

Lease incentive

495

508

Loan fees

3,190

3,227

Accrued expenses

1,073

2,735

Deferred compensation

1,653

2,418

State tax credit

774

1,033

Other

561

2,057

Total deferred tax asset

29,021

26,029

Deferred tax liability

Net unrealized gain on securities available-for-sale

-

(6,967)

FHLB stock basis

(689)

(757)

Premises and equipment

(2,470)

(2,602)

Other

(969)

(1,229)

Total deferred tax liability

(4,128)

(11,555)

Net deferred tax asset

$

24,893

$

14,474