For the Three Months Ended June 30,

For the Six Months Ended June 30,

2023

2022

2023

2022

% of

Pretax

Amount

Income

Amount

Income

Amount

Income

Amount

Income

(dollars in thousands)

Computed "expected" tax expense

$

6,802

21.0

%

$

3,514

21.0

%

$

13,090

21.0

%

$

8,965

21.0

%

Tax exempt income, net

(3,182)

(9.8)

(2,476)

(14.8)

(6,398)

(10.3)

(4,698)

(11.0)

Bank-owned life insurance

(176)

(0.5)

(73)

(0.4)

(324)

(0.5)

(146)

(0.3)

State income taxes, net of federal benefit, current year

1,239

3.8

982

5.9

2,428

3.9

2,273

5.3

Provision adjustment from accounting method change

—

(1,181)

(2.8)

Tax credits

(32)

(0.1)

(289)

(1.7)

(209)

(0.3)

(531)

(1.2)

Income from tax credit equity investments

(478)

(1.5)

158

0.9

(891)

(1.4)

(143)

(0.3)

Acquisition costs

—

242

1.4

—

372

0.9

Excess tax benefit on stock options exercised and restricted stock awards vested

(46)

(0.1)

(40)

(0.2)

(444)

(0.7)

(474)

(1.1)

Other

(160)

(0.6)

(526)

(3.2)

(503)

(0.9)

(612)

(1.5)

Federal and state income tax expense

$

3,967

12.2

%

$

1,492

8.9

%

$

6,749

10.8

%

$

3,825

9.0

%