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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
INCOME TAXES  
Schedule of income tax expense (benefit)

The following presents the components of the Company’s income tax expense as of December 31 (in thousands):

    

2021

    

2020

Current:

 

  

 

  

Federal

$

6,228

$

7,970

State and local

 

1,110

 

1,859

Total current tax expense

 

7,338

 

9,829

Deferred:

Federal

(734)

(1,392)

State and local

 

66

 

(280)

Valuation allowance

 

 

372

Total deferred tax benefit

 

(668)

 

(1,300)

Income tax expense

$

6,670

$

8,529

Schedule of reconciliation of income tax (expense) benefit

The following is a reconciliation of income taxes reflected on the Consolidated Statements of Income for the years ended December 31, 2021 and 2020, with income tax expense computed by applying the United States federal income tax rate of 21% to income before income taxes (in thousands):

    

2021

    

2020

Income tax expense computed at 21% statutory rate

$

5,729

$

6,943

Differences:

 

  

 

  

Permanent differences

 

169

 

(57)

State taxes, net of federal expense

 

1,018

 

1,150

LIHTC investment tax credit

(386)

(36)

LIHTC investment proportional amortization

539

Valuation allowance

372

Other, net

 

(399)

 

157

Income tax expense

$

6,670

$

8,529

Schedule of principal components of deferred tax assets (liabilities)

The following presents the principal components of the Company’s deferred tax items as of December 31 (in thousands):

    

2021

    

2020

Deferred tax assets:

 

  

 

  

Net operating loss carryforwards

$

395

$

577

Allowance for loan losses

 

3,385

 

3,054

Acquired loans fair market value adjustments

976

Acquisition related basis adjustment

226

Deferred rent

 

753

 

635

Stock-based compensation

 

1,800

 

1,613

Provision on other real estate owned

 

463

 

484

Other intangible assets

 

279

 

615

Accrued bonuses

 

868

 

898

Loan fees

 

 

244

Accrued expenses

821

Other

 

382

 

553

Total deferred tax assets

 

10,348

 

8,673

Deferred tax liabilities:

 

  

 

  

Goodwill

(1,137)

(1,013)

Depreciation

(1,636)

(904)

Unrealized gain on securities

(73)

(236)

Loan fees

(155)

Other

 

(130)

 

(92)

Total deferred tax liabilities

 

(3,131)

 

(2,245)

Net operating loss valuation allowance

(372)

(372)

Net deferred tax asset

$

6,845

$

6,056