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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes follows (dollars in thousands):

Year Ended December 31,

    

2022

    

2021

    

2020

Federal:

Current

$

6,071

$

8,186

$

7,979

Deferred

233

135

(1,697)

Total federal

6,304

8,321

6,282

State:

Current

4,874

5,916

5,711

Deferred

78

(50)

(914)

Total state

4,952

5,866

4,797

Total tax provision

$

11,256

$

14,187

$

11,079

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands):

December 31,

    

2022

    

2021

Deferred tax assets:

Allowance for credit losses on loans and leases

$

6,817

$

4,215

Foreclosed assets

126

Deferred compensation

4,158

4,511

Accrued reserves

1,022

555

Non-accrual loans

241

363

Lease liability

2,147

1,752

Loan fair value adjustment

245

420

Net operating losses

1,370

1,592

State income tax deduction

1,005

1,179

Other

1,211

992

Unrealized losses on securities available-for-sale

23,746

Total deferred tax assets

41,962

15,705

Deferred tax liabilities:

Deferred loan costs

(1,070)

(1,288)

Right-of-use asset

(2,034)

(1,618)

TRUPS accretion

(788)

(840)

FMV equity securities

(706)

(804)

Prepaids

(639)

(615)

Other

(517)

(565)

Intangibles

(337)

(579)

Premises and equipment

(887)

(917)

Net unrealized gain on securities available-for-sale

(4,687)

Total deferred tax liabilities

(6,978)

(11,913)

Net deferred tax assets

$

34,984

$

3,792

Schedule of Effective Income Tax Rate Reconciliation

The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands):

Year Ended December 31,

    

2022

    

2021

    

2020

Income tax expense at federal statutory rate

$

9,432

$

12,012

$

9,770

Increase (decrease) resulting from:

State franchise tax expense, net of federal tax effect

3,912

4,634

3,790

Tax exempt municipal income

(1,849)

(1,306)

(1,199)

Affordable housing tax credits

(530)

(524)

(518)

Excess tax benefit of stock-based compensation

(50)

(109)

(90)

Cash surrender value - life insurance

209

(556)

Other

132

36

(674)

Total

$

11,256

$

14,187

$

11,079

Effective tax rate

25.06%

24.80%

23.81%