Income Taxes

9 Months Ended

Sep. 30, 2022

Income Taxes

Income Taxes

Note 6— Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction, the Commonwealth of Virginia, the District of Columbia, the State of Maryland, the State of North Carolina and the State of West Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2019.

The following table summarizes the Company’s provision for income taxes charged to operations for the nine months ended September 30, 2022 and September 30, 2021, respectively.

(Dollars in thousands)	September 30, 2022		September 30, 2021
Current tax expense	$	5,193	$	5,532
Deferred tax expense (benefit)		670		(664)
Total Income Tax Expense	$	5,863	$	4,868

The following table presents the factors driving the difference between the amount of income tax determined by applying the statutory federal income tax rate to income before income taxes and the amount of income tax expense reflected in the Consolidated Statements of Income for the nine months ended September 30, 2022 and September 30, 2021, respectively.

(Dollars in thousands)	September 30, 2022		September 30, 2021
Computed “expected” tax expense	$	6,187	$	4,784
Increase (decrease) in income taxes resulting from:
Bank-owned life insurance		(93)		(65)
Tax-exempt interest income		(118)		(119)
State income taxes, net of federal benefit		347		163
Excess tax benefit on share-based compensation		(370)		(17)
Other, net		(90)		122
Total	$	5,863	$	4,868