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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2025

Summary of Components of Deferred Tax Assets and Liabilities

The following table presents the significant components of the Company's deferred tax assets and liabilities as of March 31, 2025 and December 31, 2024.


(Dollars in thousands)	March 31, 2025			December 31, 2024
Deferred tax assets:
Provision for credit losses	$	15,477		$	14,530
Accrued expenses, compensation, and other assets		4,022			5,612
Net operating loss carryforwards (1)		3,168			3,168
Other investments and investment securities		2,704			2,885
Valuation allowance		(4,228	)		(4,418	)
Total deferred tax assets		21,143			21,777
Deferred tax liabilities:
Goodwill and other intangibles		42,681			42,772
Total deferred tax liabilities		42,681			42,772
Deferred tax liability, net	$	21,538		$	20,995

(1)

As of March 31, 2025, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $0.5 million as of March 31, 2025.

Summary of Components of Tax Provision

The following table presents the components of the Company's tax provision for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
(Dollars in thousands)	2025		2024
Current
Federal	$	4,661	$	1,729
State		1,522		643
Deferred
Federal		261		3,116
State		269		870
Net provision for income taxes	$	6,713	$	6,358

Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three months ended March 31, 2025 and 2024.


	Three Months Ended March 31,
(Dollars in thousands)	2025			2024
Statutory Federal income tax provision at 21%	$	4,250		$	3,758
State and local income taxes, net of federal income tax benefit		923			735
Non-deductible expenses		1,572			1,780
Valuation allowance against deferred tax assets		(190	)		—
Other		158			85
Total income tax provision	$	6,713		$	6,358