Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The provision for income taxes for the years ended December 31, 2025, 2024, and 2023 consisted of the following (in thousands):


	Federal		State		Total
2025
Current	$	7,374	$	4,527	$	11,901
Deferred	1,737		722		2,459

Provision for income taxes	$	9,111	$	5,249	$	14,360
2024
Current	$	2,706	$	1,493	$	4,199
Deferred	(463)		(404)		(867)

Provision for income taxes	$	2,243	$	1,089	$	3,332
2023
Current	$	4,692	$	3,502	$	8,194
Deferred	176		(66)		110

Provision for income taxes	$	4,868	$	3,436	$	8,304

Components of deferred tax assets and liabilities

Deferred tax assets (liabilities) consisted of the following (in thousands):


	December 31,
	2025		2024
Deferred tax assets:
Unrealized loss on available-for-sale investment securities	$	16,631	$	23,132
Allowance for credit losses	8,890		7,970
Purchase accounting fair value adjustment	8,866		11,218
Deferred compensation	3,693		4,081

Operating lease liabilities	3,382		3,049
Net operating loss carryovers	2,075		3,175

Other deferred tax assets	1,018		848
State taxes	945		253

Mark-to-market adjustment	318		411
Loan and investment impairment	113		133
Partnership income	72		128
Other-than-temporary impairment	29		30
Low income housing tax credit carry-forward	—		942

Total deferred tax assets	46,032		55,370


Deferred tax liabilities:
Operating lease right-of-use assets	(3,032)		(2,811)
Core deposit intangible	(2,408)		(2,814)

Loan origination costs	(1,349)		(1,643)
Bank premises and equipment	(1,119)		(920)
Finance leases	(474)		(570)
FHLB stock	(189)		(191)

Total deferred tax liabilities	(8,571)		(8,949)
Net deferred tax assets	$	37,461	$	46,421

Reconciliation of effective tax rate

The significant items comprising these differences for the years ended December 31, 2025, 2024, and 2023 consisted of the following (amounts in thousands):


	2025				2024				2023
	Amount		Percent		Amount		Percent		Amount		Percent
Federal income tax, at statutory rate	$	11,031	21.0	%	$	2,310	21.0	%	$	7,106	21.0	%
State taxes, net of federal tax benefit (1)	4,147		7.9	%	860		7.8	%	2,714		8.0	%
Tax credits:
Low income housing tax credits	(1,912)		(3.6)	%	(1,720)		(15.6)	%	(847)		(2.5)	%
Other tax credits	—		—	%	—		—	%	—		—	%
Nontaxable or nondeductible items:
Tax exempt investment security income, net	(461)		(0.9)	%	(438)		(4.0)	%	(1,176)		(3.5)	%
Bank owned life insurance, net	(322)		(0.6)	%	(272)		(2.4)	%	(214)		(0.6)	%
Compensation - stock compensation	(48)		(0.1)	%	(72)		(0.6)	%	(13)		—	%

Nondeductible employee compensation	—		—	%	113		1.0	%	—		—	%
Nondeductible acquisition‑related expense	—		—	%	416		3.8	%	—		—	%
Other nontaxable or nondeductible items	239		0.4	%	194		1.7	%	(64)		(0.2)	%
Other Adjustments:
Amortization - low income housing tax credit investments	1,899		3.6	%	1,976		17.9	%	1,055		3.1	%
Other tax benefits - low income housing tax credit investments	(399)		(0.8)	%	(496)		(4.5)	%	(257)		(0.8)	%
Other	186		0.4	%	461		4.2	%	—		—	%
Total provision for income taxes	$	14,360	27.3	%	$	3,332	30.3	%	$	8,304	24.5	%
(1) State taxes in California accounted for the majority of the tax effect within this category.

Schedule of Cash Flow, Supplemental Disclosures

The following table presents the income taxes paid, net of refunds, for the years ended December 31, 2025, 2024, and 2023:


	2025		2024		2023
Federal	$	4,000	$	1,400	$	4,400
State and local:
California	4,000		1,170		3,300
Other	5		2		—
Total state and local	4,005		1,172		3,300
Total income taxes paid, net of refunds	$	8,005	$	2,572	$	7,700