Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the three and nine months ended September 30, 2022 and 2021 consists of the following:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
	(in thousands)
Federal:
Current	$	2,265		$	322		$	370		$	3,378
Deferred		(2,750	)		455			(4,047	)		(478	)
		(485	)		777			(3,677	)		2,900
State and local:
Current		274			179			847			570
Deferred		(2,963	)		(1,275	)		(5,487	)		(574	)
		(2,689	)		(1,096	)		(4,640	)		(4	)
Valuation allowance		2,354			1,637			4,061			1,068
(Benefit) provision for income taxes	$	(820	)	$	1,318		$	(4,256	)	$	3,964

Schedule of Reconciliation of Differences Between Federal Income Tax Rate and Total Income Tax Expense

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the three and nine months ended September 30, 2022 and 2021, respectively, to income before income taxes as a result of the following:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
	(in thousands)
Income tax, at federal rate	$	(3,267	)	$	708		$	(5,259	)	$	3,024
State and local tax, net of federal taxes		(2,125	)		(1,501	)		(3,666	)		(638	)
Valuation allowance, net of the federal benefit		2,354			1,637			4,061			1,068
Other		2,218			474			608			510
	$	(820	)	$	1,318		$	(4,256	)	$	3,964

Schedule of Significant Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at September 30, 2022 and December 31, 2021 are presented below:

	September 30,		December 31,
	2022		2021
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	8,219	$	5,254
Deferred loan fees		—		214
Interest on nonaccrual loans		165		102
Unrealized loss on available-for-sale securities		4,928		399
Amortization of intangible assets		37		50
Deferred rent payable		240		152
Net operating losses		7,837		3,280
Charitable contribution carryforward		1,748		366
Compensation and benefits		1,135		456
Other		1,063		264
Total gross deferred tax assets		25,372		10,537
Deferred tax liabilities:
Depreciation of premises and equipment		1,323		1,301
Deferred loan fees		749		—
Other		64		63
Total gross deferred tax liabilities		2,136		1,364
Valuation allowance		9,414		5,353
Net deferred tax assets	$	13,822	$	3,820