Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Current tax expense:
Federal	$	12,300	$	15,224	$	17,136
State		927		1,587		2,933
Total current tax expense		13,227		16,811		20,069
Deferred tax expense		1,986		2,156		4,114
Total income tax expense	$	15,213	$	18,967	$	24,183

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, 2024 and 2023, are as follows:

	As of December 31,
(dollars in thousands)	2024			2023
	Deductible temporary differences			Deductible temporary differences
Benefits and deferred remuneration	$	(10,595	)	$	(9,490	)
Difference in reporting the allowance for credit losses, net		13,271			12,995
Other income or expense not yet reported for tax purposes		(2,409	)		(1,188	)
Depreciable assets		(2,432	)		(2,496	)
Net deferred tax liability at end of year		(2,165	)		(179	)
Net deferred tax (liability) asset at beginning of year		(179	)		1,977
Deferred tax expense	$	1,986		$	2,156

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,
	2024			2023			2022
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		2.1			3.1			3.0
Other items		0.7			0.3			0.3
Effective income tax rate		23.8	%		24.4	%		24.3	%