Income Tax (Tables)

6 Months Ended

Jun. 30, 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

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021

(Dollars in thousands)

Computed at the statutory rate (

21

%)

$

4,110

$

3,957

$

8,523

$

7,095

Increase (decrease) resulting from

Tax-exempt income

(890)

(1,212)

(1,744)

(2,002)

Non-deductible expenses

111

40

193

90

State income taxes

728

682

1,424

1,178

Equity based compensation

15

(131)

(154)

(117)

Other adjustments

(47)

(73)

(27)

(73)

Actual tax expense

$

4,027

$

3,263

$

8,215

$

6,171

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences related to deferred taxes located in “other assets” on the Condensed Consolidated

Balance Sheets are presented below:

June 30, 2022

December 31, 2021

(Dollars in thousands)

Deferred tax assets

Net unrealized loss on securities available-for-sale

$

16,020

$

-

Allowance for credit losses

14,716

14,051

Lease incentive

481

508

Loan fees

3,302

3,227

Accrued expenses

1,705

2,735

Deferred compensation

1,749

2,418

State tax credit

273

1,033

Other

764

2,057

Total deferred tax asset

39,010

26,029

Deferred tax liability

Net unrealized gain on securities available-for-sale

-

(6,967)

FHLB stock basis

(722)

(757)

Premises and equipment

(2,341)

(2,602)

Other

(1,041)

(1,229)

Total deferred tax liability

(4,104)

(11,555)

Net deferred tax asset

$

34,906

$

14,474