v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Income Taxes
5.
INCOME TAXES
The Company’s income tax expense is presented
in the following table for the periods indicated (in thousands):
The actual income tax
expense for the six
months ended June 30, 2026 and
2025 differs from the statutory
tax expense
for the periods (computed by applying the U.S.
federal corporate tax rate of
21
% for both 2026 and 2025
periods to income
before income tax expense) as follows (in thousands):
The Company’s deferred tax assets and deferred
tax liabilities as of the dates indicated were (in
thousands):
The
Company
has
approximately
$
5.3
million
of
state
net
operating
loss
carryforwards
expiring
in
various
amounts
between 2032 and 2036 and which are
limited to offset, to the extent permitted, future
taxable earnings for of the Company.
In assessing the realizability of deferred tax assets, management considers
whether it is more likely than not that some
portion or
all of
the deferred
tax assets
will not
be realized.
The ultimate
realization
of deferred
tax assets
is dependent
upon the generation of
future taxable income
during the periods
in which those temporary
differences become deductible.
Management considers the scheduled reversal
of deferred tax liabilities, projected future taxable
income, and tax planning
strategies in making this assessment.
The major tax
jurisdictions where the
Company files income
tax returns are
the U.S. federal
jurisdiction and
the State
of Florida. With few exceptions, the Company is no longer subject to U.S. federal and state income tax return examinations
by tax authorities for years before 2022.
For the six months ended
June 30, 2026 and 2025 the Company did
no
t have any unrecognized tax benefits as
a result
of tax positions taken during a prior period or during
the current period. Additionally,
no
interest or penalties were recorded
as a result of tax uncertainties.
Six Months Ended June 30,
2026
2025
Pre-tax income:
Domestic
$
24,400
$
20,837
Total pre-tax income
$
24,400
$
20,837
Current tax expense:
Federal
$
4,745
$
-
State
58
-
Total
current
4,803
-
Deferred tax expense:
Federal
140
3,948
State
1,028
1,091
Deferred income tax expense
1,168
5,039
Total
income tax expense
$
5,971
$
5,039
Six Months Ended June 30,
2026
2025
Amount
% Pre-tax
Income
Amount
% Pre-tax
Income
Computed tax at the statutory federal income tax rate
$
5,124
21.00%
$
4,376
21.00%
Increase (decrease) resulting from:
State income taxes, net of federal tax benefit
(1)
1,122
4.60%
905
4.34%
Bank owned life insurance income
(257)
(1.05%)
(242)
(1.16%)
Benefit from stock-based compensation
(377)
(1.55%)
-
-
Section 162(m) limitation
322
1.32%
-
-
Other adjustments, net
37
0.15%
-
-
Total
tax expense
$
5,971
24.47%
$
5,039
24.18%
(1) Taxes
in Florida made up the majority (greater than
50
%) of the tax effect in this category.
June 30, 2026
December 31, 2025
Deferred tax assets:
Net operating loss
$
191
$
1,039
Allowance for credit losses
6,831
6,463
Lease liability
3,230
1,399
Unrealized losses on available for sale securities
10,826
10,270
Equity compensation
948
973
Accruals
324
721
Other, net
163
268
Deferred tax assets:
22,513
21,133
Deferred tax liabilities:
Deferred loan cost
(1,456)
(1,520)
Lease right of use asset
(3,230)
(1,399)
Deferred expenses
(256)
(154)
Cash flow hedge
(24)
(5)
Depreciable property
(35)
(9)
Deferred tax liabilities
(5,001)
(3,087)
Net deferred tax assets
$
17,512
$
18,046