v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit) Income tax expense (benefit) for the year ended December 31, 2025 and December 31, 2024 was as follows:
20252024
Current tax provision from continuing operations:(as restated)(as restated)
Federal
$(488)$3,006
State
(206)792
Total current tax provision from continuing operations(694)3,798
Deferred expense (benefit) from continuing operations:
Federal
(6,158)(237)
State
(1,602)(43)
Total deferred expense from continuing operations(7,760)(280)
Income tax expense (benefit) from continuing operations(8,454)3,518
Income tax benefit from discontinued operations—$(23)
Total$(8,454)$3,495
Schedule of Reconciliation of Expected Income Tax Expense (Benefit) using the Federal Statutory Rate
The effective tax rate differed from the federal statutory rate of 21% in 2025 and 2024. The summary of the differences are as follows:
20252024
(As restated)(As Restated)
Federal tax based on federal corporate statutory rate$(6,934)21.0 %$2,864
Domestic state tax expense, net of federal benefit (1)
(1,428)4.3 %592
Changes resulting from:
BOLI income(158)0.5 %(150)
Nondeductible Expenses63(0.2)%93
Other, net3— %119
Income tax expense (benefit) from continuing operations(8,454)25.6 %3,518
Income tax benefit from discontinued operations—— %(23)
Total income tax expense (benefit)$(8,454)25.6 %$3,495
(1) State taxes in Florida make up the majority (greater than 50%) of the tax expense in this category
Schedule of Cash Taxes Paid
Cash taxes paid for the year ended December 31, 2025 was as follows:
Cash Taxes Paid2025
Federal$4,250
State
Florida850
Other196
Total$5,296
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities at December 31, 2025 and December 31, 2024 were due to the following:
20252024
Deferred tax assets:(As restated)(As restated)
Allowance for credit losses
$5,679$4,106
Net operating loss carryforward4,07016
Deferred loan fees
—288
Discount on loans sold
1,0421,159
Unrealized loss on available for sale securities6511,032
Operating lease liabilities
3,3233,684
Accrued bonuses
—288
Fair value adjustments on HFI government guaranteed loans and HFS loans
1,631311
Other
1,3681,437
Total gross deferred tax assets17,76412,321
Deferred tax liabilities:
Fair value adjustments on HFI government guaranteed loans and HFS loans
——
Government guaranteed loan servicing rights
(3,152)(4,197)
Deferred loan costs
(2,391)(2,596)
Right-of-use operating lease assets
(3,634)(4,015)
Depreciation
(761)(1,068)
Total gross deferred tax liabilities(9,938)(11,876)
Net deferred tax asset$7,826$445