Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of components of income tax expense

	Year ended
	December 31,
(dollars in thousands)	2021		2020		2019
Federal
Current	$	10,731	$	14,541	$	7,091
Deferred		2,212		(3,615)		267
Federal income tax		12,943		10,926		7,358
State
Current		2,879		3,736		1,926
Deferred		574		(819)		72
State income tax		3,453		2,917		1,998
Total income tax expense	$	16,396	$	13,843	$	9,356

Schedule of deferred tax assets and liabilities

	December 31,		December 31,
(dollars in thousands)	2021		2020
Deferred Tax Assets
Allowance for loan losses	$	7,925	$	8,556
Employee compensation and benefit accruals		2,762		2,608
Expense accruals		634		352
Identifiable intangible amortization		3,341		3,388
Deferred loan fees		58		1,204
Net operating loss carry forwards		42		173
Nonaccrual loan interest		86		62
Unrealized gain on available‑for‑sale investment securities		1,426		—
Other		518		505
Total deferred tax assets from temporary differences		16,792		16,848
Deferred Tax Liabilities
Accumulated depreciation		918		314
Goodwill and intangible amortization		2,752		2,258
Servicing assets		451		511
Prepaid expenses		1,014		785
Unrealized loss on available‑for‑sale investment securities		—		3,566
Other		43		5
Total deferred tax liabilities from temporary differences		5,178		7,439
Net Deferred Tax Assets	$	11,614	$	9,409

Schedule of effective income tax rate reconciliation

	Year ended December 31,
	2021				2020				2019
			Percent of				Percent of				Percent of
(dollars in thousands)	Amount		Pretax Income		Amount		Pretax Income		Amount		Pretax Income
Taxes at statutory federal income tax rate	$	14,506	21.0	%	$	12,289	21.0	%	$	8,168	21.0	%
Tax effect of:
Tax exempt income		(556)	(0.8)	%		(527)	(0.9)	%		(442)	(1.1)	%
State income taxes, net of federal benefits		2,973	4.3			2,522	4.3			1,618	4.2
Nondeductible items and other		(527)	(0.8)			(441)	(0.8)			12	—
Applicable income taxes	$	16,396	23.7	%	$	13,843	23.6	%	$	9,356	24.1	%