Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

Income tax expense was as follows:

	Year Ended December 31, 2020			Year Ended December 31, 2019			Year Ended December 31, 2018
	(Dollars in thousands)
Current federal expense	$	4,837		$	3,162		$	3,458
Current state expense		2,596			1,983			1,983
		7,433			5,145			5,441
Deferred federal expense		(1,516	)		228			(131	)
Deferred state expense		(810	)		(54	)		(106	)
		(2,326	)		174			(237	)
Total tax expense	$	5,107		$	5,319		$	5,204

Summary of Effective Tax Rates Differ from Federal Statutory Rates

Effective tax rates differ from the federal statutory rates of 21% for 2020, 2019, and 2018 applied to income before taxes due to the following:

	Year Ended December 31, 2020			Year Ended December 31, 2019			Year Ended December 31, 2018
	(Dollars in thousands)
Federal statutory rate times financial statement    income	$	3,840		$	4,636		$	4,086
Effect of:
Meals and entertainment		34			39			39
State income taxes, net of federal tax benefit		1,509			1,608			1,494
Stock option expense and related excess tax    benefits		(134	)		(419	)		(400	)
Company owned life insurance		(55	)		(314	)		(64	)
Other, net		(87	)		(231	)		49
		1,267			683			1,118
Total tax expense	$	5,107		$	5,319		$	5,204

Summary of Net Deferred Tax Assets Included in Statement of Financial Position

The net deferred tax asset included in the statement of financial position includes the following components at the dates indicated below:

	December 31, 2020			December 31, 2019
	(Dollars in thousands)
Deferred tax assets:
Pre-opening expense	$	—		$	7
Organizational costs		25			27
Allowance for loan losses		4,717			2,971
Loans held for sale		695			52
Stock-based compensation		515			464
Accrued compensation		181			138
Lease liability		2,492			2,994
State taxes		586			456
Nonaccrual loan interest income		7			27
Other		23			24
Total deferred tax assets		9,241			7,160
Deferred tax liabilities:
Loan origination costs		(1,110	)		(752	)
Depreciation		(487	)		(663	)
Right of use asset		(2,006	)		(2,441	)
Net unrealized gain on securities available for sale		(352	)		(79	)
Other		(44	)		(36	)
Total deferred tax liabilities		(3,999	)		(3,971	)
Net deferred tax asset	$	5,242		$	3,189