Employee Benefit Plans

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

401(k) Plan

The Company has a 401(k) Plan whereby all employees are eligible to participate in the plan upon meeting age and length of service requirements. Employees may contribute portions of their compensation subject to limits based on federal tax laws. The Company makes matching contributions to the plan. For 2025 and 2024, expense attributable to the plan amounted to $523 thousand and $471 thousand, respectively. The 401(k) expense is reported as salaries and employee benefits on the consolidated statements of income.

Long-Term Cash Incentive Plan

The Company maintains a long-term cash incentive compensation plan under which awarded participants are entitled to receive cash payments equivalent to the increase in Retained Earnings Per Share (“REPS”), as defined in the plan, with a vesting period determined by the grant date and extending over five or seven years. As of December 31, 2025 and December 31, 2024, the accrued liability for obligations under this plan was $4.0 million and $3.2 million, respectively. For the years 2025 and 2024, expenses attributable to the plan amounted to $1.2 million and $1.6 million, respectively.

On September 10, 2024, the Board of Directors adopted the Amended and Restated Long-Term Cash Incentive Plan, which became effective immediately. Under this plan, all awards granted in 2024 or later vest over five years, reflecting a change from the previous plan, under which awards granted prior to 2024 vest over seven years.

The accrued liability for vested and unvested awards is reported under accrued expenses and other liabilities on the consolidated balance sheets, while plan-related expenses are recognized in salaries and employee benefits in the consolidated statements of income.