Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Summary of Income Tax Expense

A summary of income tax expense included in the Consolidated Statements of Income follows:

(dollars in thousands)	For the year ended December 31,
	2021			2020			2019
Current tax expense:
Federal	$	17,657			15,662			15,171
State		3,195			2,399			2,359
Total current tax expense		20,852			18,061			17,530
Deferred tax (benefit) expense		(238	)		(1,067	)		1,139
Total income tax expense	$	20,614			16,994			18,669

Tax Effects of Temporary Differences

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020, are as follows:

	December 31,
(dollars in thousands)	2021			2020
	Deductible temporary differences			Deductible temporary differences
Benefits and deferred remuneration	$	(7,335	)		(6,178	)
Difference in reporting the allowance for loan losses, net		12,369			12,820
Other income or expense not yet reported for tax purposes		1,907			534
Depreciable assets		(2,068	)		(2,541	)
Net deferred tax asset at end of year		4,873			4,635
Net deferred tax asset at beginning of year		4,635			3,568
Deferred tax (benefit) expense	$	(238	)		(1,067	)

Effective Income Tax Rate

The effective tax rates differ from the statutory federal income tax rate.  The reasons for these differences are as follows:

	For the year ended December 31,
	2021			2020		2019
Statutory federal income tax rate		21.0	%		21.0		21.0
Increase/(decrease) in taxes resulting from:
State income tax, net of federal tax benefit		3.2			2.4		2.6
Other items		0.9			1.1		0.8
Effective income tax rate		25.1	%		24.5		24.4