Income Taxes (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2026 and December 31, 2025.


(Dollars in thousands)	June 30, 2026			December 31, 2025
Deferred tax assets:
Provision for credit losses	$	18,272		$	17,700
Accrued expenses, compensation, and other assets		2,575			5,868
Net operating loss carryforwards (1)		2,648			2,648
Other investments and investment securities		2,610			2,553
Valuation allowance		(3,852	)		(5,957	)
Total deferred tax assets		22,253			22,812
Deferred tax liabilities:
Goodwill and other intangibles		42,226			42,408
Total deferred tax liabilities		42,226			42,408
Deferred tax liability, net	$	19,973		$	19,596

(1)

As of June 30, 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 June 30, 2026.

Summary of Components of Tax Provision

The following table presents the components of the Company's tax provision for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2026			2025			2026		2025
Current
Federal	$	4,175		$	5,757		$	6,136	$	10,418
State		1,659			2,569			2,399		4,091
Deferred
Federal		(893	)		(1,709	)		370		(1,448	)
State		(224	)		(812	)		140		(543	)
Net provision for income taxes	$	4,717		$	5,805		$	9,045	$	12,518

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 and six months ended June 30, 2026 and 2025.


	Three Months Ended June 30,											Six Months Ended June 30,
(Dollars in thousands)	2026					2025						June 30,						June 30,
	Amount		Percent (1)			Amount			Percent (1)			Amount			Percent (1)			Amount		Percent (1)
Statutory Federal income tax provision	$	3,044		21	%	$	4,089			21	%	$	5,484			21	%	$	8,339		21	%
State and local income taxes, net of federal income tax benefit		816		6			889			5			1,726			7			1,812		5
Non-deductible expenses (benefits)		454		3			(562	)		(3	)		3,839			15			1,010		3
Valuation allowance against deferred tax assets		281		2			324			2			(2,105	)		(8	)		134		0
Change in effective state income tax rates and accrual		—		—			696			4			—			—			696		2
Other		122		1			369			2			101			0			527		1
Total income tax provision	$	4,717		33	%	$	5,805			30	%	$	9,045			35	%	$	12,518		32	%

(1)

Percentage may not foot due to rounding.