Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Schedule of components of income tax expense

	Year ended
	December 31,
(dollars in thousands)	2022		2021		2020
Federal
Current	$	9,005	$	10,731	$	14,541
Deferred		727		2,212		(3,615)
Federal income tax		9,732		12,943		10,926
State
Current		2,298		2,879		3,736
Deferred		147		574		(819)
State income tax		2,445		3,453		2,917
Total income tax expense	$	12,177	$	16,396	$	13,843

Schedule of deferred tax assets and liabilities

	December 31,		December 31,
(dollars in thousands)	2022		2021
Deferred Tax Assets
Allowance for loan losses	$	7,818	$	7,925
Employee compensation and benefit accruals		2,455		2,762
Expense accruals		417		634
Identifiable intangible amortization		3,363		3,341
Deferred loan fees		1,665		58
Net operating loss carry forwards		3		42
Nonaccrual loan interest		74		86
Unrealized loss on available‑for‑sale investment securities		33,056		1,426
Other		884		518
Total deferred tax assets from temporary differences		49,735		16,792
Deferred Tax Liabilities
Accumulated depreciation		835		918
Goodwill and intangible amortization		5,115		2,752
Servicing assets		663		451
Prepaid expenses		552		1,014
Other		201		43
Total deferred tax liabilities from temporary differences		7,366		5,178
Net Deferred Tax Assets	$	42,369	$	11,614

Schedule of effective income tax rate reconciliation

	Year ended December 31,
	2022				2021				2020
			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	$	10,958	21.0	%	$	14,506	21.0	%	$	12,289	21.0	%
Tax effect of:
Tax exempt income		(514)	(1.0)	%		(556)	(0.8)	%		(527)	(0.9)	%
State income taxes, net of federal benefits		2,297	4.4	%		2,973	4.3			2,522	4.3	%
Nondeductible items and other		(564)	(1.1)	%		(527)	(0.8)			(441)	(0.8)	%
Applicable income taxes	$	12,177	23.3	%	$	16,396	23.7	%	$	13,843	23.6	%