INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	For the Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Current federal income tax	$	8,129	$	9,419	$	12,988
Current state income tax		75		240		240
Deferred income tax		1,716		(3,625)		(1,657)
Total income tax expense	$	9,920	$	6,034	$	11,571

Provision for income tax expense and effective tax rates

	For the Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Tax expense calculated at statutory rate	$	9,559	$	6,803	$	13,038
Increase (decrease) resulting from:
State income tax		60		190		190
Tax exempt interest income		(1,111)		(832)		(807)
Bank-owned life insurance		(731)		(506)		(1,047)
Regulatory fines		1,680		—		—
Other		463		379		197
Total income tax expense	$	9,920	$	6,034	$	11,571
Effective tax rate		21.79%		18.63%		18.64%

Schedule of net deferred tax asset (liability)

		December 31,
(Dollars in thousands)		2021		2020
Deferred tax assets:
	Allowance for credit losses	$	7,268	$	9,412
	Compensation related		2,689		2,427
	Deferred loan origination fees and loan costs		1,772		2,025
	Loan related		339		376
	Operating lease liabilities		2,970		3,454
	Other		66		29
	Total deferred tax assets		15,104		17,723
Deferred tax liabilities:
	Accumulated depreciation		(1,205)		(1,550)
	Operating lease right-to-use assets		(2,350)		(2,790)
	Core deposit intangibles		(694)		(836)
	Unrealized gain on securities available for sale		(813)		(1,801)
	Other		(69)		(46)
	Total deferred tax liabilities		(5,131)		(7,023)
Net deferred tax asset		$	9,973	$	10,700