| Income Taxes The following table presents the reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the actual effective rate for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | (Dollars in thousands) | | Income tax expense at Federal statutory rate | $ | 4,352 | | | $ | 3,037 | | | $ | 9,055 | | | $ | 6,430 | | | State tax, net of Federal tax benefit | 231 | | | 147 | | | 480 | | | 312 | | | Tax-exempt instruments | (346) | | | (266) | | | (684) | | | (581) | | | BOLI surrender | — | | | 515 | | | — | | | 515 | | Federal tax credits and other benefits(1) | (1,169) | | | (1,172) | | | (2,350) | | | (2,358) | | | Effects of BOLI | (269) | | | (258) | | | (480) | | | (437) | | | Effects of Merger | 487 | | | — | | | 974 | | | — | | | Restricted stock unit excess (benefit) liability | 73 | | | (38) | | | 50 | | | (55) | | | Other, net | (181) | | | 279 | | | (417) | | | 666 | | | Income tax expense | $ | 3,178 | | | $ | 2,244 | | | $ | 6,628 | | | $ | 4,492 | |
(1) Federal tax credits are provided for under the Solar Tax Credit and LIHTC programs.
|