Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
	(in thousands)
Federal:
Current	$	(842	)	$	2,496		$	(1,895	)	$	3,056
Deferred		418			(969	)		(1,297	)		(933	)
		(424	)		1,527			(3,192	)		2,123
State and local:
Current		378			323			573			391
Deferred		(1,981	)		391			(2,524	)		701
		(1,603	)		714			(1,951	)		1,092
Valuation allowance		1,539			(327	)		1,707			(569	)
(Benefit) provision for income taxes	$	(488	)	$	1,914		$	(3,436	)	$	2,646

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 six months ended June 30, 2022 and 2021, respectively, to income before income taxes as a result of the following:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
	(in thousands)
Income tax, at federal rate	$	59		$	1,646		$	(1,992	)	$	2,316
State and local tax, net of federal taxes		(1,266	)		564			(1,541	)		863
Valuation allowance, net of the federal benefit		1,539			(327	)		1,707			(569	)
Other		(820	)		31			(1,610	)		36
	$	(488	)	$	1,914		$	(3,436	)	$	2,646

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 June 30, 2022 and December 31, 2021 are presented below:

	June 30,		December 31,
	2022		2021
	(in thousands)
Deferred tax assets:
Allowance for loan losses	$	5,634	$	5,254
Deferred loan fees		—		214
Interest on nonaccrual loans		238		102
Unrealized loss on available-for-sale securities		4,122		399
Amortization of intangible assets		41		50
Deferred rent payable		208		152
Net operating losses		5,870		3,280
Charitable contribution carryforward		1,658		366
Compensation and benefits		890		456
Other		207		264
Total gross deferred tax assets		18,868		10,537
Deferred tax liabilities:
Depreciation of premises and equipment		1,301		1,301
Deferred loan fees		786		—
Other		63		63
Total gross deferred tax liabilities		2,150		1,364
Valuation allowance		7,060		5,353
Net deferred tax assets	$	9,658	$	3,820