Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 17 – Income Taxes

The components of income tax expense were as follows:

	For the years ended December 31,
(dollars in thousands)	2021		2020			2019
Current income taxes:
Federal	$	10,414		10,244			6,791
State		2,088		841			1,250
Total current tax expense		12,502		11,085			8,041
Deferred income tax expense (benefit)		1,590		(5,594	)		(420	)
Income tax expense	$	14,092		5,491			7,621

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)	2021			2020			2019
Tax expense at statutory rate	$	12,768			5,002			7,451
Effect of state income taxes, net of federal benefit		1,649			664			987
Exempt income		(43	)		(27	)		(26	)
Effect of stock-based compensation		(115	)		(30	)		(693	)
Other		(167	)		(118	)		(98	)
Income tax expense	$	14,092			5,491			7,621

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

	December 31,
(dollars in thousands)	2021		2020
Deferred tax assets:
Allowance for loan losses	$	6,386		9,271
Unrealized loss on securities available for sale		197		-
Net deferred loan fees		1,054		812
Deferred compensation		1,930		1,728
Write-down of real estate owned		-		216
Lease liabilities		5,883		4,102
Other		260		187
		15,710		16,316
Deferred tax liabilities:
Property and equipment		1,419		1,610
Unrealized gain on securities available for sale		-		272
Hedging transactions		151		855
Prepaid expenses		148		120
ROU assets		5,595		3,941
		7,313		6,798
Net deferred tax asset	$	8,397		9,518

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions.