INCOME TAXES

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 21—INCOME TAXES:

The components of income tax expense for the years ended December 31, 2025, 2024 and 2023 were as follows:

	Years ended December 31,
	2025		2024		2023
Current income tax expense:
Federal	$	8,144	$	4,637	$	1,251
State	2,839		2,799		1,593
Total current expense	10,983		7,436		2,844
Deferred income tax expense/(benefit):
Federal	7,501		9,076		(4,318)
State	981		1,327		(482)
Total deferred expense/(benefit)	8,482		10,403		(4,800)
Total income tax expense/(benefit)	$	19,465	$	17,839	$	(1,956)

The components of income taxes paid for the years ended December 31, 2025, 2024 and 2023 were as follows:

	Years ended December 31,
	2025	2024	2023
Total Incomes Taxes Paid	12,502	7,429	6,884
Federal	8,471	3,904	4,650
State:
Florida	615	—	—
New York:
New York City	—	314	—
New York State	1,544	1,704	1,128
Other	1,872	1,507	1,106

For the years ended December 31, 2025, 2024 and 2023, income taxes for financial reporting purposes differ from the amount computed by applying the statutory federal income tax rate of 21% as shown in the following table:

	Years ended December 31,
	2025				2024			2023
US federal statutory income tax rate	$	16,795	21.00	%	14,425	21.00	%	9,528	21.00	%
State and local income taxes, net of federal effect	3,125		3.91	%	3,538	5.15	%	911	2.01	%
Domestic federal reconciling items
Nontaxable and nondeductible items, net	531		0.66	%	(148)	(0.22)	%	788	1.74	%
Other	(986)		(1.23)	%	24	0.04	%	(203)	(0.45)	%
Realization of net operating loss carryforwards	—		—	%	—	—	%	(7,430)	(16.38)	%
DTA realization due to change in taxpayer status	—		—	%	—	—	%	(5,550)	(12.23)	%
Income tax expense/(benefit)	$	19,465	24.34	%	17,839	25.97	%	(1,956)	(4.31)	%

For the years ended December 31, 2025, state income taxes in Florida and New York comprise the majority of the state income tax expense, net of federal effect category. For the years ended December 31, 2024 and 2023, state income taxes in New York comprise the majority of the state income tax expense, net of federal effect category.

Significant components of the Company’s net deferred tax asset at December 31, 2025 and 2024 are listed below:

	December 31, 2025		December 31, 2024
Deferred tax assets:
Allowance for credit losses	$	11,599	$	7,914
Lease liabilities	747		1,737
Other	1,865		2,757
Purchase accounting, net	9		183
Stock compensation	21		1,134
Goodwill and intangible assets	—		217
Federal and state net operating losses, net of federal tax effect	832		201
Total deferred tax assets	15,073		14,143
Deferred tax liabilities:
Investments	1,076		2,481
Servicing rights	7,484		6,234
Right of use assets	725		1,488
Goodwill and intangible assets	1,128		—
Loans	15,381		6,069
Other	7		115
Total deferred tax liabilities	25,801		16,387
Net deferred tax liability	$	(10,728)	$	(2,244)

At December 31, 2025 and December 31, 2024, the Company has $19.1 million and $4.1 million of state net operating loss carryforwards, respectively.

The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Company files tax returns in federal and certain state and local jurisdictions. The periods subject to examination are generally for tax years ended in 2022 and beyond, including the following major jurisdictions: U.S. Federal, New York, and Florida. However, the Company’s net operating losses continue to be subject to review by tax authorities in the period utilized notwithstanding origination in closed periods.

The following table provides details of the expiration dates for Company’s net operating loss carryforwards at December 31, 2025 and 2024:

Expiring:	December 31, 2025		December 31, 2024
Years ended 2029 - 2035	$	38	$	154
Years ended 2036 - 2043	18,944		3,872
Never	86		86
Total	$	19,068	$	4,112

As of December 31, 2025, the Company had no uncertain tax positions. The Company has elected to recognize interest and penalties related to income tax matters as a component of income tax expense, of which no interest or penalties were recorded for the years ended December 31, 2025, 2024 and 2023.