Income Taxes (Tables)

3 Months Ended

Mar. 31, 2026

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 March 31, 2026 and December 31, 2025.


(Dollars in thousands)	March 31, 2026			December 31, 2025
Deferred tax assets:
Provision for credit losses	$	17,836		$	17,700
Accrued expenses, compensation, and other assets		1,613			5,868
Net operating loss carryforwards (1)		2,648			2,648
Other investments and investment securities		2,574			2,553
Valuation allowance		(3,571	)		(5,957	)
Total deferred tax assets		21,100			22,812
Deferred tax liabilities:
Goodwill and other intangibles		42,317			42,408
Total deferred tax liabilities		42,317			42,408
Deferred tax liability, net	$	21,217		$	19,596

(1)

As of March 31, 2026, 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 March 31, 2026.

Summary of Components of Tax Provision

The following table presents the components of the Company's tax provision for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
(Dollars in thousands)	2026		2025
Current
Federal	$	1,961	$	4,661
State		740		1,522
Deferred
Federal		1,263		261
State		364		269
Net provision for income taxes	$	4,328	$	6,713

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 three months ended March 31, 2026 and 2025.


	Three Months Ended March 31,
(Dollars in thousands)	2026						2025
	Amount			Percent (1)			Amount			Percent (1)
Statutory Federal income tax provision	$	2,440			21	%	$	4,250			21	%
State and local income taxes, net of federal income tax benefit		910			8			923			5
Non-deductible expenses		3,385			29			1,572			8
Valuation allowance against deferred tax assets		(2,386	)		(21	)		(190	)		(1	)
Other		(21	)		(0	)		158			1
Total income tax provision	$	4,328			37	%	$	6,713			33	%

(1)

Percentage may not foot due to rounding.