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Income Taxes
 12 Months Ended
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)202120202019
Current income tax expense:
Federal$9,243 $4,837 $3,162 
State4,885 2,596 1,983 
Total current income tax expense14,128 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,
202120202019
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 benefit8.5 %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 rate29.1 %28.0 %24.2 %

The significant components of deferred tax assets and liabilities are reflected in the following table:
December 31,
($ in thousands)20212020
Deferred tax assets:
Organizational costs$22 $25 
Allowance for loan losses4,827 4,717 
Loans held for sale2,919 695 
Stock-based compensation211 515 
Accrued compensation238 181 
Lease liability3,047 2,492 
State taxes1,059 586 
Net unrealized loss on AFS debt securities503 — 
Nonaccrual loan interest income62 7 
Other49 23 
Total deferred tax assets12,937 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.