Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the three months ended March 31, 2022 and 2021 consists of the following:

	For the Three Months Ended March 31,
	2022			2021
	(in thousands)
Federal:
Current	$	(1,053	)	$	560
Deferred		(1,715	)		36
		(2,768	)		596
State and local:
Current		195			68
Deferred		(543	)		310
		(348	)		378
Valuation allowance		168			(242	)
(Benefit) provision for income taxes	$	(2,948	)	$	732

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 months ended March 31, 2022 and 2021, respectively, to income before income taxes as a result of the following:

	For the Three Months Ended March 31,
	2022			2021
	(in thousands)
Income tax, at federal rate	$	(2,051	)	$	669
State and local tax, net of federal taxes		(275	)		299
Valuation allowance, net of the federal benefit		168			(242	)
Other		(790	)		6
	$	(2,948	)	$	732

Schedule of Significant Deferred Tax Assets and Liabilities

Note 9.Income Taxes (Continued)

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

	March 31,		December 31,
	2022		2021
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	5,428	$	5,254
Deferred loan fees		—		214
Interest on nonaccrual loans		154		102
Unrealized loss on available-for-sale securities		1,929		399
Amortization of intangible assets		45		50
Deferred rent payable		181		152
Net operating losses		4,557		3,280
Charitable contribution carryforward		1,621		366
Compensation and benefits		666		456
Other		259		264
Total gross deferred tax assets		14,840		10,537
Deferred tax liabilities:
Depreciation of premises and equipment		1,301		1,301
Deferred loan fees		515		—
Other		63		63
Total gross deferred tax liabilities		1,879		1,364
Valuation allowance		5,521		5,353
Net deferred tax assets	$	7,440	$	3,820