Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
	(Dollars in thousands)
Combined federal and state income tax provision	$	87		$	11,671		$	33,814		$	21,963
Effective income tax rate	0.1		%	30.7		%	(40.4)		%	25.3		%

The Company recorded income tax expense of $0.1 million and $33.8 million for the three and six months ended June 30, 2025, respectively, compared to $11.7 million and $22.0 million for the three and six months ended June 30, 2024, respectively.

The decrease in income tax expense for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due to the treatment of the tax benefit associated with the loss on sale of securities incurred in the first quarter of 2025. Such loss is not considered to be a discrete item for tax purposes and, therefore, the associated tax benefit of $70.8 million is realizable ratably over the full year. Accordingly, the Company recognized a portion of the associated tax benefit during the three months ended June 30, 2025 which reduced net income tax expense.

Similarly, the increase in income tax expense for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to the treatment of pre-tax losses resulting from losses on sales of available for sale securities in the first quarter of 2025 described above. Income tax expense increased as the full year tax benefit associated with the loss on sale of securities was only partially recognized during the six months ended June 30, 2025.