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Income Taxes (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2025 and December 31, 2024.


(Dollars in thousands)	June 30, 2025			December 31, 2024
Deferred tax assets:
Provision for credit losses	$	17,035		$	14,530
Accrued expenses, compensation, and other assets		4,888			5,612
Net operating loss carryforwards (1)		3,168			3,168
Other investments and investment securities		2,790			2,885
Valuation allowance		(4,552	)		(4,418	)
Total deferred tax assets		23,329			21,777
Deferred tax liabilities:
Goodwill and other intangibles		42,590			42,772
Total deferred tax liabilities		42,590			42,772
Deferred tax liability, net	$	19,261		$	20,995

(1)

As of June 30, 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 June 30, 2025.

Summary of Components of Tax Provision

The following table presents the components of the Company's tax provision for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2025			2024			2025			2024
Current
Federal	$	5,757		$	4,792		$	10,418		$	6,521
State		2,569			1,476			4,091			2,119
Deferred
Federal		(1,709	)		(1,916	)		(1,448	)		1,200
State		(812	)		(570	)		(543	)		300
Net provision for income taxes	$	5,805		$	3,782		$	12,518		$	10,140

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 and six months ended June 30, 2025 and 2024.


	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2025			2024		2025		2024
Statutory Federal income tax provision at 21%	$	4,089		$	2,603	$	8,339	$	6,361
State and local income taxes, net of federal income tax benefit		889			509		1,812		1,244
Non-deductible (benefits) expenses		(562	)		374		1,010		2,154
Valuation allowance against deferred tax assets		324			—		134		—
Change in effective state income tax rates and accrual		696			—		696		—
Other		369			296		527		381
Total income tax provision	$	5,805		$	3,782	$	12,518	$	10,140