Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

The income tax expense and the effective tax rate included in the consolidated statements of income are shown in the table below for the periods presented (dollars in thousands).

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
Income tax expense	$	2,459		$	1,485		$	5,059		$	2,915
Effective tax rate		20.7	%		20.7	%		20.6	%		20.9	%

For the three and six month periods ended June 30, 2022, the effective tax rate differs from the statutory tax rate of 21% primarily due to tax exempt interest income earned on certain loans, investment securities, and bank owned life insurance. For the three and six month periods ended June 30, 2021, the effective tax rate differs from the statutory tax rate of 21% primarily due to tax exempt interest income earned on certain investment securities.