Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense for 2020 and 2019 consisted of the following:

	2020		2019
	(Dollars in thousands)
Current tax expense:
Federal	$	9,648	$	7,719
State	2,658		2,229
	12,306		9,948
Deferred tax benefit/expense	(2,295)		(163)
Income tax expense	$	10,011	$	9,785

Components of Net Deferred Tax Asset

The components of the net deferred tax asset at December 31, 2020 and 2019 were as follows:

	2020		2019
	(Dollars in thousands)
Deferred tax assets:
Allowance for loan losses	$	7,255	$	5,350
Supplemental Executive Retirement Plan ("SERP")	1,583		1,459
OREO writedowns	158		480
Nonaccrued interest	612		466
Non-qualified stock options and restricted stock	117		59
Write-down on partnership investment	133		134
PPP Deferred Loan Fees	509		—
Other	84		84
	10,451		8,032
Valuation allowance	(133)		(134)
Total gross deferred tax assets	10,318		7,898
Deferred tax liabilities:
Depreciation	(158)		(106)
Partnership income	(28)		(67)
Unrealized gain	(161)		(29)
Deferred loan costs	(1,360)		(1,249)
Total gross deferred tax liabilities	$	(1,707)	$	(1,451)
Net deferred tax asset	$	8,611	$	6,447

Reconciliation of Effective Income Tax Rate with Statutory Federal Rate

A reconciliation of the Company’s effective income tax rate with the statutory federal rate for 2020 and 2019 is as follows:

	2020		2019
	(Dollars in thousands)
At Federal statutory rate	$	8,166	$	8,415
Adjustments resulting from:
State income taxes, net of Federal tax benefit	1,783		1,677
Non-controlling interest	(94)		(94)
Tax exempt income	(11)		(11)
BOLI	(124)		(126)
Stock compensation	(1)		(9)
Nondeductible expenses	1		1
Nondeductible compensation under 162m	125		—
Other	166		(68)
	$	10,011	$	9,785