For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

% of

Pretax

 

Amount

 

Income

 

Amount

 

Income

 

Amount

 

Income

 

Amount

 

Income

(dollars in thousands)

U.S. federal statutory tax rate

$

8,291

21.0

%

$

6,420

21.0

%

$

15,811

21.0

%

$

11,902

21.0

%

State and local income taxes, net of federal income tax effect (*)

1,059

2.7

896

2.9

2,088

2.8

1,344

2.4

Tax credits

Low income housing tax credits

(1,017)

(2.6)

(822)

(2.7)

(2,038)

(2.7)

(1,512)

(2.7)

Other credits

(47)

(0.1)

60

0.2

(96)

(0.1)

(135)

(0.2)

Nontaxable or nondeductible items

Tax exempt income, net

(7,531)

(19.1)

(7,960)

(26.0)

(14,989)

(19.9)

(15,465)

(27.3)

Interest disallowance

2,805

7.2

3,327

10.9

5,721

7.6

6,442

11.4

Bank-owned life insurance

(234)

(0.6)

(210)

(0.7)

(410)

(0.5)

(320)

(0.6)

Meals and entertainment

38

0.1

25

0.1

65

—

46

—

Other

(273)

(0.7)

(149)

(0.5)

(403)

(0.5)

(291)

(0.5)

Changes in unrecognized tax benefits

204

0.5

—

369

0.4

—

Other adjustments

Excess tax benefit on stock options exercised and restricted stock awards vested

(101)

(0.3)

(37)

(0.1)

(685)

(0.9)

(527)

(0.9)

Provision adjustment

11

—

153

0.2

373

0.7

Other

22

0.1

2

—

69

0.1

3

—

Effective tax rate

$

3,227

8.2

%

$

1,552

5.1

%

$

5,655

7.5

%

$

1,860

3.3

%

* State taxes in Iowa made up the majority (greater than 50 percent) of the tax effect in this category.