PROVISION FOR INCOME TAXES (Tables)

resulting from tax-exempt interest, tax-exempt income from bank-owned life insurance (“BOLI”), and tax benefits resulting from certain partnership investments.


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
(Dollars in Thousands)	Amount		Percent	Amount		Percent	Amount		Percent	Amount		Percent
U. S. Federal Statutory Rate	$	7,821	21.0	$	2,232	21.0	$	30,927	21.0	$	4,571	21.0
State and Local Income Taxes, Net of Federal Income Tax Effect1	2,025		5.4	130		1.2	3,511		2.4	391		1.8
Tax Credits
Rehabilitation Tax Credits, Net of Basis Reduction	2		—	(157)		(1.5)	2		—	(309)		(1.4)
Tax Credit Investment Amortization, Net of Federal Benefits	23		0.1	128		1.2	68		—	256		1.2
Change in Valuation Allowance	(869)		(2.3)	(8)		(0.1)	(824)		(0.6)	23		0.1
Nontaxable or Nondeductible Items
Tax-Exempt Interest, Net of Disallowance	(168)		(0.5)	(114)		(1.1)	(271)		(0.2)	(231)		(1.1)
Income From Bank Owned Life Insurance	(90)		(0.2)	(71)		(0.7)	(175)		(0.1)	(538)		(2.4)

Other Adjustments

Interim Period Effective Rate Adjustment	(304)		(0.8)	(27)		(0.3)	(558)		(0.4)	154		0.7
Other	(113)		(0.3)	5		0.2	(79)		—	(16)		(0.1)
Income Tax Provision and Effective Income Tax Rate	$	8,327	22.4	$	2,118	19.9	$	32,601	22.1	$	4,301	19.8

1For the three and six months ended June 30, 2026 and 2025, North Carolina comprised the majority (greater than 50%) of the tax effect in this category.