Income Taxes (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Components of Income Tax Provision

The components of the income tax provision are detailed as follows for the dates indicated (dollars in thousands):


	Three Months Ended March 31,
	2026		2025
Current income tax expense
Federal	$	6,080	$	5,134
State	906		765
Total current income tax expense	6,986		5,899
Deferred tax expense
Federal	251		(480)
State	37		(71)
Total deferred income tax expense	288		(551)
Total income tax expense	$	7,274	$	5,348

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of taxes on income from the statutory income tax rate to income tax expense is as follows for the periods indicated (dollars in thousands):


	Three Months Ended March 31,
	2026				2025
	Amount		Percent		Amount		Percent
Income tax expense, computed at federal statutory rate of pretax income	$	6,180	21.00	%	$	4,745	21.00	%
State and local income taxes	910		3.09	%	584		2.58	%
Effect of nontaxable income and nondeductible expenses	184		0.63	%	18		0.08	%
Other	—		—	%	1		0.02	%
Total income tax expense	$	7,274	24.72	%	$	5,348	23.68	%

Schedule of Income Taxes Paid

Income taxes paid were as follows for the periods indicated (dollars in thousands):


	Three Months Ended March 31,
	2026		2025
	Amount		Amount
Federal	$	—	$	—
State and local
Virginia	90		—
Pennsylvania	40		11
Ohio	38		34
Massachusetts	32		16
California	28		—
New York	23		7
Minnesota	16		6
Connecticut	—		19
All other states	23		—
Total income taxes paid	$	290	$	93

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following as of period end (dollars in thousands):


	March 31, 2026		December 31, 2025
Allowance for credit losses	$	2,340	$	2,518
Accrued expenses and other reserve accounts	1,868		1,802
Nonaccrual loan interest	910		846
Stock compensation	829		509
Other real estate owned valuation	73		31
Unrealized loss on debt securities available for sale	10		45
Other deferred tax assets	70		76
Total deferred tax assets	6,100		5,827
Mortgage servicing rights	4,885		4,030
Fixed assets	3,216		3,273

Goodwill and intangibles	442		472
Deferred loan costs/fees	1,596		1,732
Other deferred tax liabilities	71		106
Total deferred tax liabilities	10,210		9,613
Net deferred tax liability	$	(4,110)	$	(3,786)