Income Tax (Tables)

6 Months Ended

Jun. 30, 2023

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,

2023

2022

2023

2022

(Dollars in thousands)

Computed at the statutory rate (21%)

$

4,256

$

4,110

$

8,483

$

8,523

Increase (decrease) resulting from

Tax-exempt income

(835)

(890)

(1,715)

(1,744)

Nondeductible expenses

67

111

160

193

State income taxes

670

728

1,302

1,424

Equity based compensation

80

15

35

(154)

Other adjustments

(19)

(47)

(25)

(27)

Actual tax expense

$

4,219

$

4,027

$

8,240

$

8,215

Schedule of Deferred Tax Assets and Liabilities

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

financial condition are presented below:

June 30, 2023

December 31, 2022

(Dollars in thousands)

Deferred tax assets

Net unrealized loss on securities available-for-sale

$

19,634

$

20,295

Allowance for credit losses

17,857

16,710

Lease incentive

424

451

Loan fees

4,078

4,048

Accrued expenses

2,171

3,379

Deferred compensation

2,023

2,166

Other

1,419

1,469

Total deferred tax asset

47,606

48,518

Deferred tax liability

FHLB stock basis

(287)

(436)

Premises and equipment

(1,819)

(2,042)

Other

(1,062)

(1,018)

Total deferred tax liability

(3,168)

(3,496)

Net deferred tax asset

$

44,438

$

45,022