Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense

The components of income tax expense for the years ended December 31, 2020 and 2019, were as follows:

	Years Ended December 31,
(in thousands)	2020		2019
Current tax expense	$	6,193	$	6,196
Deferred tax expense (benefit)	130		(556)
Income tax expense	$	6,323	$	5,640

Schedule of effective income tax rate reconciliation

The source and tax effect of items reconciling income tax expense to the amount computed by applying the federal income tax rates in effect to income before income tax expense for the years ended December 31, 2020 and 2019, are as follows:

	December 31,
	2020				2019
(dollars in thousands)	Amount		Percent		Amount		Percent
Income before income tax expense	$	34,468	100.0	%	$	30,464	100.0	%
U.S. federal income tax expense	7,238		21.0	%	6,397		21.0	%
Nontaxable income	(1,045)		(3.0)	%	(803)		(2.7)	%
Nondeductible expenses	45		0.1	%	22		0.1	%
Other	85		0.2	%	24		0.1	%
Income tax expense	$	6,323	18.3	%	$	5,640	18.5	%

Schedule of deferred tax assets (liabilities)

The deferred tax assets (liabilities) were comprised of the following as of December 31, 2020 and 2019:

	December 31,
(in thousands)	2020		2019
Depreciation	$	(1,953)	$	(1,467)
Unrealized gain on securities	(1,840)		—
FHLB stock dividends	(19)		(16)
Gross deferred tax liability	(3,812)		(1,483)
Allowance for loan losses	3,400		2,920
Allowance for operational losses	74		36
Health insurance self fund	211		208
Deferred compensation	570		762
Unrealized loss on securities	—		6
Equity security valuation	(5)		14
Advance payment	150		187
Accrued bonus	220		139
Other	139		152
Gross deferred tax asset	4,759		4,424
Net deferred tax asset (liability)	$	947	$	2,941