Income Taxes

12 Months Ended

Dec. 31, 2025

Income Taxes [Abstract]

Income Taxes

Note 9:  Income Taxes

For the years ended December 31, 2025, 2024, and 2023, all income before income taxes was generated from domestic operations.

The (benefit)/provision for income taxes for the years ended December 31, 2025, 2024 and 2023 consists of the following (dollars in thousands):

	Year Ended December 31,
	2025			2024			2023
Federal:
Current	$	12,184		$	12,411		$	8,490
Deferred		(477	)		(49	)		(921	)
Total federal tax provision	$	11,707		$	12,362		$	7,569
State:
Current	$	1,990		$	2,275		$	1,540
Deferred		(1	)		19			(161	)
Total state tax provision	$	1,989		$	2,294		$	1,379
Total income tax provision	$	13,696		$	14,656		$	8,948

The provision for income taxes for the year ended December 31, 2025 differs from the federal rate of 21% due to the following (dollars in thousands):

	Year Ended December 31, 2025
	Amount		Percent
Statutory U.S. federal income tax	$	11,921		21.00	%
State taxes(1)		1,572		2.77	%
Nontaxable and nondeductible items, net:
Other		203		0.36	%
Provision for income taxes	$	13,696		24.13	%

(1) State taxes in Oklahoma made up the majority (greater than 50 percent) of the tax effect in this category.

The provision for income taxes for the years ended December 31, 2024 and 2023 differs from the federal rate of 21% due to the following (dollars in thousands):

	Year Ended December 31,
	2024		2023
Statutory U.S. federal income tax	$	12,675	$	7,789
State taxes(1)		1,694		1,069
Other		287		90
Provision for income taxes	$	14,656	$	8,948

The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025 (dollars in thousands):

	Year Ended December 31,
	2025
US federal	$	11,800
US state and local
Oklahoma		1,780
Other		134
Total	$	13,714

The components of the net deferred tax assets are as follows (dollars in thousands):

	Year Ended December 31,
	2025			2024
Deferred tax assets:
Allowance for credit losses	$	4,534		$	4,364
Non-accrual loans		834			716
Deferred compensation		651			496
Deferred revenue		306			206
Discounts and premiums on assets acquired		-			15
Net unrealized loss on securities available for sale		554			1,281
Lease liabilities		501			443
Other		788			313
Total deferred tax assets	$	8,168		$	7,834
Deferred tax liabilities:
Property and equipment	$	(1,014	)	$	(899	)
Intangible assets		(993	)		(341	)
Prepaid expenses		(103	)		(122	)
Right of use asset		(482	)		(413	)
Other		(129	)		(363	)
Total deferred tax liabilities	$	(2,721	)	$	(2,138	)
Net deferred tax assets	$	5,447		$	5,696

In assessing the Company’s ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize all benefits related to these deductible differences. The Company has not established a valuation allowance as of December 31, 2025, 2024, and 2023.

The Company does not have any net operating loss or tax credit carryforwards as of December 31, 2025.

The Company is not presently under examination by the Internal Revenue Service or any state tax authority.

The Company establishes reserves for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2025 and 2024, and 2023 and there were no interest or penalties related to uncertain tax positions reflected in the consolidated statements of comprehensive income for the years ended December 31, 2025, 2024, and 2023.

On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” (“the Act”) into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Act also made certain changes to the deductibility of the cost of meals and charitable contributions that are effective for tax years beginning after December 31, 2025. These changes were not reflected in the income tax provision for the period ended December 31, 2025. The Company evaluated the impact on future periods and the legislation is not expected to have a significant impact on the Company’s consolidated financial statements.