Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of federal and state components of the Company's provision for income taxes

The following table reflects the federal and state components of the Company’s provision for income taxes for the years ended December 31, 2022 and 2021.

	For the Years Ended December 31,
(Dollars in thousands)	2022			2021
Federal:
Current	$	6,568		$	4,972
Deferred		(921	)		(1,632	)
Federal provision for income taxes		5,647			3,340
State:
Current		3,511			2,407
Deferred		(360	)		(653	)
State provision for income taxes		3,151			1,754
Provision for income taxes	$	8,798		$	5,094

Summary of reconciliation of the effective tax rate

The following table reflects a reconciliation of the effective tax rate for the years ended December 31, 2022 and 2021.

	For the Years Ended December 31,
(Dollars in thousands)	2022			2021
Statutory federal income tax rate		21.0	%		21.0	%
State income taxes, net of federal benefit		8.3	%		7.6	%
Low income housing credits, net of investment losses		-0.3	%		-0.8	%
Increase in cash surrender value of life insurance		-0.5	%		-0.8	%
Share-based compensation		0.2	%		0.4	%
Other, net		0.7	%		0.5	%
Effective tax rate		29.4	%		27.9	%

Summary of Company's deferred tax assets, net of deferred liabilities, included in other assets in the consolidated financial statements

The following table reflects the Company’s deferred tax assets, net of deferred liabilities, included in other assets in the consolidated financial statements.

	December 31,
(Dollars in thousands)	2022			2021
Deferred tax assets:
Allowance for loan losses	$	5,027		$	4,163
Lease liability		1,757			2,428
Accrued expenses		1,876			1,666
Organization costs		—			14
Share-based compensation		370			391
Deferred compensation		1,072			1,077
Net operating loss carryforwards		977			1,166
Loan discounts		19			34
Unrealized loss on available for sale investment securities		549			12
State tax deduction		743			417
Other		1,134			882
Total deferred tax assets		13,524			12,250
Deferred tax liabilities:
Deferred loan origination costs		(1,679	)		(1,592	)
Right of use asset		(1,347	)		(1,903	)
Core deposit intangible		(36	)		(48	)
Other		(31	)		(92	)
Total deferred tax liabilities		(3,093	)		(3,635	)
Net deferred tax assets	$	10,431		$	8,615