Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The Company’s effective tax rate was 28.2% for the three months ended June 30, 2022 and 26.7% for the six months ended June 30, 2022, as compared to 26.3% and 26.1% for the three and six months ended June 30, 2021, respectively. The increase in the effective rate was primarily due to tax expense associated with the surrender of a Bank Owned Life Insurance policy during the quarter ended June 30, 2022.

Net deferred tax assets totaled $12.2 million and $10.0 million at June 30, 2022 and December 31, 2021, respectively. The Company did not record a valuation allowance for deferred tax assets at June 30, 2022 or December 31, 2021.

The components of income tax expense were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2022			2021		2022		2021
	(dollars in thousands)
Current income tax expense
Federal	$	3,868		$	3,056	$	4,963	$	5,147
State	$	1,595			1,367		1,984		2,289
Total current income tax expense		5,463			4,423		6,947		7,436
Deferred income tax expense (benefit)
Federal	$	(61	)	$	370	$	1,964	$	1,552
State	$	(27	)		178		908		726
Total deferred income tax expense (benefit)		(88	)		548		2,872		2,278
Total income tax expense	$	5,375		$	4,971	$	9,819	$	9,714