Note 16 - Income Taxes

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 16. INCOME TAXES

Our income tax expense for the three and nine months ended September 30, 2022 and September 30, 2021 totaled $3.9 million and $3.0 million, and $10.3 million and $8.9 million, respectively. Our effective tax rate (income tax expense as a percentage of income before taxes) for the three and nine months ended September 30, 2022 and 2021 was 21.1% and 19.8% and 21.3% and 21.1%, respectively. A reconciliation between the statutory income tax rate and our effective income tax rate for the three and nine months ended September 30, 2022 and 2021 is as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
	Percent			Percent			Percent			Percent
Applicable statutory rate		21.0	%		21.0	%		21.0	%		21.0	%
Increase (decrease) in rate resulting from:
Tax-exempt interest and dividends, net		(1.5	)%		(1.3	)%		(1.4	)%		(1.4	)%
State income taxes, net of Federal income tax benefit		1.9	%		2.1	%		2.0	%		2.1	%
Low-income housing and rehabilitation tax credits		(0.3	)%		(0.1	)%		(0.3	)%		(0.2	)%
Other, net		—	%		(1.9	)%		—	%		(0.4	)%
Effective income tax rate		21.1	%		19.8	%		21.3	%		21.1	%

The components of applicable income tax expense for the three and nine months ended September 30, 2022 and 2021 are as follows:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
Dollars in thousands	2022			2021		2022		2021
Current
Federal	$	3,617		$	2,350	$	8,644	$	7,720
State		480			351		1,180		1,122
		4,097			2,701		9,824		8,842
Deferred
Federal		(211	)		282		426		38
State		(30	)		40		61		6
		(241	)		322		487		44
Total	$	3,856		$	3,023	$	10,311	$	8,886