Income Tax (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

Three Months Ended

Nine Months Ended

September 30,

September 30,

2022

2021

2022

2021

(Dollars in thousands)

Computed at the statutory rate (

21

%)

$

4,555

$

5,598

$

13,078

$

12,693

Increase (decrease) resulting from

Tax-exempt income

(903)

(828)

(2,647)

(2,830)

Non-deductible expenses

72

55

265

145

State income taxes

740

912

2,164

2,090

Equity based compensation

(47)

(40)

(201)

(157)

Other adjustments

(7)

(37)

(34)

(110)

Actual tax expense

$

4,410

$

5,660

$

12,625

$

11,831

Schedule of Deferred Tax Assets and Liabilities

September 30, 2022

December 31, 2021

(Dollars in thousands)

Deferred tax assets

Net unrealized loss on securities available-for-sale

$

27,374

$

-

Allowance for credit losses

15,067

14,051

Lease incentive

467

508

Loan fees

3,645

3,227

Accrued expenses

2,438

2,735

Deferred compensation

1,969

2,418

State tax credit

-

1,033

Other

495

2,057

Total deferred tax asset

51,455

26,029

Deferred tax liability

Net unrealized gain on securities available-for-sale

-

(6,967)

FHLB stock basis

(735)

(757)

Premises and equipment

(2,209)

(2,602)

Other

(1,410)

(1,229)

Total deferred tax liability

(4,354)

(11,555)

Net deferred tax asset

$

47,101

$

14,474