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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 17. Income Taxes (Restated) This note has been restated to reflect the changes described in the Explanatory Note and Note 23 to the Consolidated Financial Statements included in this Form 10-K/A. The following table presents the differences between the provision for income taxes at the federal statutory rate and the amounts computed as reported for the periods stated.
|  | For the years ended December 31, |
(Dollars in thousands) |  | 2022 (Restated) |  |  | 2021 |  |  | 2020 |
Income tax at federal statutory rate |  | $ | 4,750 |  |  |  | 21.0 | % |  | $ | 14,317 |  |  |  | 21.0 | % |  | $ | 4,725 |  |  |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax effect |  |  | 388 |  |  |  | 1.7 | % |  |  | 1,499 |  |  |  | 2.2 | % |  |  | 34 |  |  |  | 0.2 | %
Tax-exempt interest income |  |  | (121 | ) |  |  | (0.5 | %) |  |  | (105 | ) |  |  | (0.2 | %) |  |  | (20 | ) |  |  | (0.1 | %)
Income from life insurance |  |  | (283 | ) |  |  | (1.3 | %) |  |  | (196 | ) |  |  | (0.3 | %) |  |  | (82 | ) |  |  | (0.4 | %)
Merger-related expenses |  |  | — |  |  |  | — |  |  |  | 250 |  |  |  | 0.4 | % |  |  | 174 |  |  |  | 0.8 | %
Other permanent differences |  |  | 554 |  |  |  | 2.4 | % |  |  | (64 | ) |  |  | (0.1 | %) |  |  | (31 | ) |  |  | (0.1 | %)
Provision for income taxes |  | $ | 5,288 |  |  |  | 23.3 | % |  | $ | 15,701 |  |  |  | 23.0 | % |  | $ | 4,800 |  |  |  | 21.4 | %
The following table presents the significant components of the provision for income taxes as of the dates stated.
|  | For the years ended December 31, |
(Dollars in thousands) |  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (Restated) |  |  |  |  |  |  |
Current tax provision |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,762 |  |  | $ | 12,832 |  |  | $ | 6,437 |
State |  |  | 546 |  |  |  | 946 |  |  |  | 43 |
Total current tax provision |  |  | 5,308 |  |  |  | 13,778 |  |  |  | 6,480 |
Deferred tax provision (benefit) |  |  |  |  |  |  |  |  |
Federal |  |  | 185 |  |  |  | 971 |  |  |  | (1,680 | )
State |  |  | (205 | ) |  |  | 952 |  |  |  | — |
Total deferred tax (benefit) provision |  |  | (20 | ) |  |  | 1,923 |  |  |  | (1,680 | )
Provision for income taxes |  | $ | 5,288 |  |  | $ | 15,701 |  |  | $ | 4,800 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents significant components of deferred tax assets and liabilities as of the dates stated.
|  | December 31, |
(Dollars in thousands) |  | 2022 |  |  | 2021 |
|  | (Restated) |  |  |  |
Deferred tax assets relating to: |  |  |  |  |  |
Allowance for loan losses |  | $ | 6,869 |  |  | $ | 2,470 |
Compensation differences |  |  | 1,340 |  |  |  | 1,221 |
Reserve for loan sale buy backs |  |  | 640 |  |  |  | 227 |
Acquisition accounting adjustments |  |  | 1,522 |  |  |  | 3,463 |
Loan origination costs |  |  | 160 |  |  |  | 67 |
Pass-through entities |  |  | 114 |  |  |  | 487 |
Unrealized losses on securities available for sale |  |  | 13,149 |  |  |  | 1,092 |
Other |  |  | 1,857 |  |  |  | 872 |
Total deferred tax assets |  |  | 25,651 |  |  |  | 9,899 |
Deferred tax liabilities relating to: |  |  |  |  |  |
Premises and equipment, net |  |  | (2,191 | ) |  |  | (2,885 | )
Core deposit and customer-based intangible assets |  |  | (1,179 | ) |  |  | (1,549 | )
Mortgage servicing rights |  |  | (6,478 | ) |  |  | (3,711 | )
Unrealized gains on other investments |  |  | (3,491 | ) |  |  | (1,536 | )
Other |  |  | (85 | ) |  |  | (68 | )
Total deferred tax liabilities |  |  | (13,424 | ) |  |  | (9,749 | )
Deferred tax asset, net |  | $ | 12,227 |  |  | $ | 150 |
Deferred income tax assets and liabilities are measured at the enacted tax rate for the period in which they are expected to reverse; therefore, as of December 31, 2022, they have been measured using the federal income tax rate enacted for subsequent years of 21% and applicable state income tax rates. As of December 31, 2022 and 2021, the Company had no net operating losses to be carried forward and applied against future taxable income. Th e Company’s policy is to report interest and penalties, if any, related to uncertain tax positions in income tax expense in the consolidated statements of income. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2018. As of December 31, 2022 and 2021, the Company has no uncertain tax positions. The Company’s deferred tax asset was $25.7 million a nd $9.9 million at December 31, 2022 and 2021, respectively. As of December 31, 2022, management concluded that the Company’s deferred tax assets were fully realizable, and accordingly, no valuation allowance was recorded. The Company will continue to monitor deferred tax assets to evaluate whether it will be able to realize the full benefit of the deferred tax asset or whether there is need for a valuation allowance. Significant negative trends in asset credit quality, losses from operations, or other factors could impact the realization of the deferred tax asset in the future.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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