Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 10—Income Taxes

The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates.

The effective tax rate for the six months ended June 30, 2022 and 2021 was 22.2% and 25.3%, respectively. The Company recorded discrete income tax benefit of $2.1 million and $72,000 related to the exercise of stock options and vesting of restricted shares for the six months ended June 30, 2022 and 2021, respectively.

Net deferred tax assets increased to $79.0 million at June 30, 2022 compared to $50.3 million at December 31, 2021 primarily as a result of unrealized losses on available-for-sale securities.