Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The following table presents the components of income tax expense (benefit):

(Dollars in thousands)
Years ended December 31,	2023	2022	2021
Current Tax Expense:
Federal	$10,494	$16,127	$17,032
State	1,501	2,202	2,130
Total current tax expense	11,995	18,329	19,162
Deferred Tax Expense (Benefit):
Federal	412	1,012	1,822
State	(4,102)	148	333
Total deferred tax expense (benefit)	(3,690)	1,160	2,155
Total income tax expense	$8,305	$19,489	$21,317

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the reasons for the differences:

Years ended December 31,	2023			2022			2021
(Dollars in thousands)	Amount	Rate		Amount	Rate		Amount	Rate
Tax expense at Federal statutory rate	$11,861	21.0	%	$19,146	21.0	%	$20,619	21.0	%
Increase (decrease) in taxes resulting from:
State income tax expense, net of federal tax benefit	1,107	2.0		1,856	2.1		1,943	2.0
Share-based compensation	29	0.1		(68)	(0.1)		(159)	(0.2)
Tax-exempt income, net	(543)	(1.0)		(721)	(0.8)		(772)	(0.8)
Investments in low-income housing tax credits and other benefits, net	(357)	(0.6)		(261)	(0.3)		(117)	(0.1)
BOLI	(732)	(1.3)		(544)	(0.6)		(614)	(0.6)
State valuation allowance adjustment, net	2,153	3.8		—	—		—	—
State net operating loss carryforward, net of federal tax	(1,312)	(2.3)		—	—		—	—
Adjustment to net deferred tax assets for enacted changes in state tax law	(4,093)	(7.2)		—	—		—	—
Other	192	0.2		81	0.1		417	0.4
Total income tax expense	$8,305	14.7	%	$19,489	21.4	%	$21,317	21.7	%

Schedule of Deferred Tax Assets and Liabilities

The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities:

(Dollars in thousands)
December 31,	2023	2022
Deferred Tax Assets:
Net unrealized losses on available for sale debt securities	$38,823	$41,379
Allowance for credit losses on loans	10,470	9,127
Operating lease liabilities	8,167	7,094
Deferred compensation	5,258	4,486
Cash flow hedges	5,250	7,151
Deferred loan origination fees	2,356	2,106
Share-based compensation	1,806	1,884
Defined benefit pension obligations	1,425	—
State net operating loss carryforwards	1,312	—
Other	2,094	1,809
Deferred tax assets	76,961	75,036
Less: valuation allowance	(2,153)	—
Deferred tax assets, net of valuation allowance	74,808	75,036
Deferred Tax Liabilities:
Operating lease ROU assets	(7,488)	(6,518)
Deferred loan origination costs	(7,365)	(6,394)
Loan servicing rights	(2,171)	(2,163)
Depreciation of premises and equipment	(1,897)	(1,494)
Amortization of intangibles	(946)	(1,093)
Defined benefit pension obligations	—	(333)
Other	(1,133)	(669)
Deferred tax liabilities	(21,000)	(18,664)
Net deferred tax asset	$53,808	$56,372