Income Taxes The following table presents the reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the actual effective rate for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | (Dollars in thousands) | | | | | | | | | Income tax expense at Federal statutory rate | $ | 3,037 | | | $ | 3,359 | | | $ | 6,430 | | | $ | 4,801 | | | | | | | | | | State tax, net of Federal tax benefit | 147 | | | 147 | | | 312 | | | 208 | | | | | | | | | | Tax-exempt instruments | (266) | | | (237) | | | (581) | | | (470) | | | | | | | | | | BOLI surrender | 515 | | | — | | | 515 | | | — | | | | | | | | | | Federal tax credits and other benefits (1) | (1,172) | | | (975) | | | (2,358) | | | (1,984) | | | | | | | | | | Effects of BOLI | (258) | | | (185) | | | (437) | | | (366) | | | | | | | | | | Restricted stock unit excess (benefit) liability | (38) | | | 17 | | | (55) | | | 267 | | | | | | | | | | Other, net | 279 | | | (290) | | | 666 | | | 500 | | | | | | | | | | Income tax expense | $ | 2,244 | | | $ | 1,836 | | | $ | 4,492 | | | $ | 2,956 | | | | | | | | | |
(1) Federal tax credits are provided for under the Solar Tax Credit and LIHTC programs.
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