Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Components of Deferred Tax Assets and Liabilities

The following table presents the significant components of the Company's deferred tax assets and liabilities as of December 31, 2025 and 2024.


	December 31,
(Dollars in thousands)	2025			2024
Deferred tax assets:
Provision for credit losses	$	17,700		$	14,530
Accrued expenses, compensation, and other assets		5,868			5,612
Net operating loss carryforwards (1)		2,648			3,168
Other investments and investment securities		2,553			2,885
Valuation allowance		(5,957	)		(4,418	)
Total deferred tax assets		22,812			21,777
Deferred tax liabilities:
Goodwill and other intangibles		42,408			42,772
Total deferred tax liabilities		42,408			42,772
Deferred tax liability, net	$	19,596		$	20,995

(1)

As of December 31, 2025, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had no net carrying value as of December 31, 2025.

Summary of Components of Tax Provision

The following table presents the components of the Company's tax provision for the years ended December 31, 2025, 2024, and 2023.


	Year Ended December 31,
(Dollars in thousands)	2025			2024			2023
Current
Federal	$	19,532		$	15,634		$	18,634
State		7,928			4,789			6,014
Deferred
Federal		(2,010	)		1,455			(52	)
State		(906	)		(867	)		314
Net provision for income taxes	$	24,544		$	21,011		$	24,910

Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the years ended December 31, 2025, 2024, and 2023.


	Year Ended December 31,
(Dollars in thousands)	2025					2024					2023
	Amount		Percent (1)			Amount		Percent (1)			Amount			Percent (1)
Statutory Federal income tax provision	$	16,776		21	%	$	13,217		21	%	$	18,068			21	%
State and local income taxes, net of federal income tax benefit		4,525		6			2,623		4			3,534			4
Valuation allowance against deferred tax assets		1,539		2			558		1			1,565			2
Change in effective state income tax rates and accrual		424		1			109	*				(222	)	*
Non-deductible expenses		457		1			3,899		6			2,024			2
Other		823		1			605		1			(59	)	*
Total income tax provision	$	24,544		31	%	$	21,011		33	%	$	24,910			29	%

(1) Percentage may not foot due to rounding.

(*) Less than 1%.