Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Summary of Income Tax Expense

A summary of income tax expense included in the Consolidated Statements of Income follows:

(dollars in thousands)	For the year ended December 31,
	2022		2021			2020
Current tax expense:
Federal	$	17,136	$	17,657		$	15,662
State		2,933		3,195			2,399
Total current tax expense		20,069		20,852			18,061
Deferred tax (benefit) expense		4,114		(238	)		(1,067	)
Total income tax expense	$	24,183	$	20,614		$	16,994

Tax Effects of Temporary Differences

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

	As of December 31,
(dollars in thousands)	2022			2021
	Deductible temporary differences			Deductible temporary differences
Benefits and deferred remuneration	$	(8,478	)	$	(7,335	)
Difference in reporting the allowance for loan losses, net		12,424			12,369
Other income or expense not yet reported for tax purposes		420			1,907
Depreciable assets		(2,389	)		(2,068	)
Net deferred tax asset at end of year		1,977			4,873
Impact of ASU 2016-13, Current Expected Credit Loss (CECL)		1,218			-
Net deferred tax asset at beginning of year		4,873			4,635
Deferred tax expense (benefit)	$	4,114		$	(238	)

Effective Income Tax Rate

The effective tax rates differ from the statutory federal income tax rate.  The reasons for these differences are as follows:

	For the year ended December 31,
	2022			2021			2020
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Increase/(decrease) in taxes resulting from:
State income tax, net of federal tax benefit		3.0			3.2			2.4
Other items		0.3			0.9			1.1
Effective income tax rate		24.3	%		25.1	%		24.5	%