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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table presents the components of income taxes expense (benefit) for the years ended December 31, 2021, 2020 and 2019:
|  | Year Ended December 31,
($ in thousands) |  | 2021 |  | 2020 |  | 2019
Current income tax expense: |  |  |  |  |  |
Federal |  | $ | 9,243 |  |  | $ | 4,837 |  |  | $ | 3,162 |
State |  | 4,885 |  |  | 2,596 |  |  | 1,983 |
Total current income tax expense |  | 14,128 |  |  | 7,433 |  |  | 5,145 |
Deferred income tax (benefit) expense: |  |  |  |  |  |
Federal |  | (1,614) |  |  | (1,516) |  |  | 228 |
State |  | (698) |  |  | (810) |  |  | (54) |
Total deferred income tax (benefit) expense |  | (2,312) |  |  | (2,326) |  |  | 174 |
Total income tax expense |  | $ | 11,816 |  |  | $ | 5,107 |  |  | $ | 5,319 |
The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for the periods indicated:
|  | Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Federal statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in tax rate resulting from: |  |  |  |  |  |
Meals and entertainment |  | — | % |  | 0.2 | % |  | 0.2 | %
State income taxes, net of federal tax benefit |  | 8.5 | % |  | 8.3 | % |  | 7.3 | %
Stock option expense and related excess tax benefits |  | 0.1 | % |  | (0.7) | % |  | (1.9) | %
Company owned life insurance |  | (0.1) | % |  | (0.3) | % |  | (1.4) | %
Other, net |  | (0.4) | % |  | (0.5) | % |  | (1.0) | %
Effective tax rate |  | 29.1 | % |  | 28.0 | % |  | 24.2 | %
The significant components of deferred tax assets and liabilities are reflected in the following table:
|  | December 31,
($ in thousands) |  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Organizational costs |  | $ | 22 |  |  | $ | 25 |
Allowance for loan losses |  | 4,827 |  |  | 4,717 |
Loans held for sale |  | 2,919 |  |  | 695 |
Stock-based compensation |  | 211 |  |  | 515 |
Accrued compensation |  | 238 |  |  | 181 |
Lease liability |  | 3,047 |  |  | 2,492 |
State taxes |  | 1,059 |  |  | 586 |
Net unrealized loss on AFS debt securities |  | 503 |  |  | — |
Nonaccrual loan interest income |  | 62 |  |  | 7 |
Other |  | 49 |  |  | 23 |
Total deferred tax assets |  | 12,937 |  |  | 9,241 |
Deferred tax liabilities: |  |  |  |
Loan origination costs |  | (1,477) |  |  | (1,110) |
Depreciation |  | (379) |  |  | (487) |
Right of use asset |  | (2,633) |  |  | (2,006) |
Net unrealized gain on AFS debt securities |  | — |  |  | (352) |
Other |  | (39) |  |  | (44) |
Total deferred tax liabilities |  | (4,528) |  |  | (3,999) |
Net deferred tax asset |  | $ | 8,409 |  |  | $ | 5,242 |
A valuation allowance for deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and tax planning strategies which will create taxable income during the periods in which those temporary differences become deductible. Management reevaluated all positive and negative evidence that existed and concluded all deferred tax assets are realizable. Therefore, no valuation allowance was necessary as of December 31, 2021 and 2020. The Company is subject to U.S. Federal income tax as well as various state taxing jurisdictions. The Company is no longer subject to examination by Federal taxing authorities for tax years prior to 2018 and for state taxing authorities for tax years prior to 2017. There were no significant unrealized tax benefits recorded as of December 31, 2021 and 2020, and the Company does not expect any significant increase in unrealized tax benefits in the next twelve months.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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