Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019, are as follows:


Dollars in thousands	2021		2020		2019
Current
Federal	$	10,189	$	10,189	$	6,676
State	1,210		1,440		938
	11,399		11,629		7,614
Deferred
Federal	231		(3,673)		88
State	33		(528)		15
	264		(4,201)		103
Total	$	11,663	$	7,428	$	7,717

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the amount of reported income tax expense and the amount computed by multiplying the statutory income tax rates by book pretax income for the years ended December 31, 2021, 2020 and 2019 is as follows:


	2021			2020			2019
Dollars in thousands	Amount		Percent	Amount		Percent	Amount		Percent
Computed tax at applicable statutory rate	$	12,054	21	$	8,138	21	$	8,313	21
Increase (decrease) in taxes resulting from:
Tax-exempt interest
and dividends, net	(829)		(1)	(788)		(2)	(728)		(2)

Low-income housing and rehabilitation tax credits	(206)		—	(248)		(1)	(177)		—

State income taxes, net
of Federal income tax benefit	982		2	720		2	753		2
Other, net	(338)		(1)	(394)		(1)	(444)		(1)
Applicable income taxes	$	11,663	21	$	7,428	19	$	7,717	20

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which give rise to our deferred tax assets and liabilities as of December 31, 2021 and 2020, are as follows:


Dollars in thousands	2021		2020
Deferred tax assets
Allowance for credit losses	$	9,497	$	8,553

Foreclosed properties	2,089		2,703
Deferred compensation	4,803		4,384
Other deferred costs and accrued expenses	970		1,053


Net unrealized loss on derivative financial instruments	—		357

Total	17,359		17,050
Deferred tax liabilities
Depreciation	630		288
Accretion on tax-exempt securities	9		19
Net unrealized gain on debt securities available for sale	590		2,153
Net unrealized gain on interest rate swaps	1,136		—
Other post-retirement benefits	12		—
Acquisition accounting adjustments and goodwill	2,440		2,241
Total	4,817		4,701
Net deferred tax assets	$	12,542	$	12,349