Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of components of income tax expense

The components of income tax expense were as follows:

	For the years ended December 31,
(dollars in thousands)	2020			2019			2018
Current income taxes:
Federal	$	10,244			6,791			5,536
State		841			1,250			990
Total current tax expense		11,085			8,041			6,526
Deferred income tax expense (benefit)		(5,594	)		(420	)		(125	)
Income tax expense	$	5,491			7,621			6,401

Summary of taxes computed using the statutory tax rate

The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate:

	For the years ended December 31,
(dollars in thousands)	2020			2019			2018
Tax expense at statutory rate	$	5,002			7,451			6,025
Effect of state income taxes, net of federal benefit		664			987			782
Exempt income		(27	)		(26	)		(34	)
Effect of stock-based compensation		(30	)		(693	)		(248	)
Other		(118	)		(98	)		(124	)
Income tax expense	$	5,491			7,621			6,401

Summary of components of the deferred tax assets and liabilities

The components of the deferred tax assets and liabilities are as follows:

	December 31,
(dollars in thousands)	2020		2019
Deferred tax assets:
Allowance for loan losses	$	9,271		3,495
Unrealized loss on securities available for sale		-		79
Net deferred loan fees		812		697
Deferred compensation		1,728		1,404
Write-down of real estate owned		216		-
Lease liabilities		4,102		4,219
Other		187		234
		16,316		10,128
Deferred tax liabilities:
Property and equipment		1,610		1,398
Unrealized gain on securities available for sale		272		-
Hedging transactions		855		227
Prepaid expenses		120		132
ROU assets		3,941		4,096
		6,798		5,853
Net deferred tax asset	$	9,518		4,275