Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense

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


	For the Years Ended December 31,
	2025			2024			2023
	(in thousands)
Current tax provision:
Federal	$	8,607		$	748		$	105
State		1,757			1,482			1,452
Total current tax provision		10,364			2,230			1,557
Deferred tax provision:
Federal		(896	)		2,410			773
State		1,330			276			696
Total deferred tax provision		434			2,686			1,469
Valuation allowance		(1,070	)		(203	)		(525	)
Total provision for income taxes	$	9,728		$	4,713		$	2,501

Schedule of Reconciliation of Differences Between Income Tax Expense and Income Before Taxes By Federal Income Tax Rate

Reconciliation between the reported income tax expense and the amount computed by multiplying consolidated income before taxes by the statutory federal income tax rate of 21 percent for the years ended December 31, 2025 2024 and 2023 were as follows:


	For the Years Ended December 31,
	2025						2024						2023
	Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
U.S. federal statutory tax rate	$	8,071			21.0	%	$	3,294			21.0	%	$	1,229			21.0	%
State and local tax, net of federal benefit (1)		2,439			6.3	%		1,389			8.9	%		1,697			29.0	%
Changes in valuation allowance		(1,070	)		(2.8	%)		(203	)		(1.3	%)		(525	)		(9.0	%)
Nontaxable or nondeductible items (2)
Other nontaxable or nondeductible		429			1.1	%		280			1.8	%		211			3.6	%
Other adjustments		(141	)		(0.4	%)		(47	)		(0.3	%)		(111	)		(1.9	%)
Provision for income taxes	$	9,728			25.2	%	$	4,713			30.1	%	$	2,501			42.7	%

(1)

State and local taxes in New York State and New York City made up the majority (greater than 50%) of the tax effect in this category.

(2)

The nontaxable or nondeductible items category includes items such as other nondeductible expenses. None of those items individually or in the aggregate exceeded the 5% quantitative threshold for separate disaggregation for the years ended December 31, 2025, 2024 and 2023..

Schdule of Income Taxes Paid

Total income taxes paid for the years ended December 31, 2025, 2024 and 2023 consists of the following:


	For the Years Ended December 31,
	2025		2024		2023
	(in thousands)
Federal	$	6,794	$	1,050	$	—
State and Local:
New York State		1,086		924		865
Other States		30		4		—
New York City		545		493		673
Total income taxes paid	$	8,455	$	2,471	$	1,538

Schedule of Significant Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 are presented below:


	At December 31,
	2025		2024
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	7,934	$	6,942
Interest on nonaccrual loans		1,643		1,265
Unrealized loss on available-for-sale securities		2,934		4,141
Amortization of intangible assets		109		46
Operating lease liabilities		9,152		9,470
Net operating losses		5,191		6,656
Charitable contribution carryforward		257		1,476
Compensation and benefits		1,172		844
Deferred loan fees and cost, net		154		—
Other		1,465		1,627
Total gross deferred tax assets		30,011		32,467
Deferred tax liabilities:
Depreciation of premises and equipment		537		724
Right of use assets		8,600		8,975
Deferred loan fees and cost, net		—		337
Other		225		139
Total gross deferred tax liabilities		9,362		10,175
Valuation allowance		9,148		10,218
Net deferred tax assets	$	11,501	$	12,074