Income Taxes (Table)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense in the consolidated statements of income for the years ended December 31, 2022, 2021, and 2020, includes the following (in thousands):

	2022		2021		2020
Current tax expense
Federal	$	10,412	$	8,031	$	6,330
State		2,029		855		1,447
Deferred tax expense related to:
Federal		(407)		405		(991)
State		(148)		238		(228)
Total income tax expense	$	11,886	$	9,529	$	6,558

Schedule of Effective Income Tax Rate Reconciliation

The income tax expense is different from the expected tax expense computed by multiplying income before income tax expense by the statutory income tax rate of 21%. The reasons for this difference are as follows (in thousands):

	2022		2021		2020
Federal income tax expense computed at the statutory rate	$	11,531	$	9,307	$	6,487
State income taxes, net of federal tax benefit		1,486		863		923
Nondeductible acquisition expenses		1		94		109
Tax-exempt interest		(624)		(568)		(555)
Bank-owned life insurance		(389)		(393)		(149)
Tax benefit from stock options		(170)		(10)		(14)
Other		51		236		(243)
Total income tax expense	$	11,886	$	9,529	$	6,558

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset, which are included in Other Assets in the consolidated balance sheets, as of December 31, 2022 and 2021, were as follows (in thousands):

	2022		2021
Deferred tax assets:
Allowance for loan losses	$	6,033	$	5,011
Fair value adjustments		3,366		4,119
Unrealized losses on investment securities		11,965		—
Unrealized losses on hedges		337		—
Other real estate owned		258		306
Deferred compensation		2,316		1,564
Lease liability		2,445		2,559
Federal net operating loss carryforward		4,335		4,645
Other		1,617		1,977
Total deferred tax assets		32,672		20,181
Deferred tax liabilities:
Accumulated depreciation		2,464		2,317
Core deposit intangible		2,362		3,047
Right of use asset		2,408		2,541
Unrealized gains on investment securities		—		240
Unrealized gains on hedges		—		262
Other		845		540
Total deferred tax liabilities		8,079		8,947
Net deferred tax asset	$	24,593	$	11,234