INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of components of income tax expense (benefit)

Components of income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023 are presented below. The Company does not have pretax income from continuing foreign operations or foreign tax expense.


	Year Ended December 31,
(Dollars in thousands)	2025		2024		2023
Current expense:
Federal	$	29,299	$	5,744	$	5,538
State	6,993		112		1,404
Total current	36,292		5,856		6,942
Deferred (benefit) expense:
Federal	(12,576)		6,800		9,300
State	(2,915)		1,971		1,911
Total deferred	(15,491)		8,771		11,211
Provision for income taxes	$	20,801	$	14,627	$	18,153

Schedule of the reasons of difference between the income tax expense (benefit) and the expected tax expense

The table below provides the updated requirements of ASU 2023-09 for 2025. Income tax expense (benefit) for the periods presented differed from the "expected" tax expense (computed by applying the U.S. federal corporate tax rate of 21% for the years ended December 31, 2025, 2024 and 2023, to income before income taxes) for the following reasons. The Company does not have pretax income from continuing foreign operations or foreign tax expense.


	Year Ended December 31,
	2025				2024				2023
(Dollars in thousands)	$		%		$		%		$		%
U.S. Federal statutory tax rate	$	20,639	21.00	%	$	14,288	21.00	%	$	16,133	21.00	%
Effect of:
State and local income taxes, net of Federal income tax effect *	3,221		3.28	%	1,646		2.42	%	2,619		3.41	%

Tax credits:
Amortization of low-income housing tax credit partnerships, net of tax benefits	264		0.27	%	880		1.29	%	700		0.91	%
Other tax credits	(663)		(0.67)	%	(142)		(0.21)	%	—		—	%
Nontaxable and nondeductible items:
Tax-exempt interest income	(1,203)		(1.22)	%	(868)		(1.28)	%	(702)		(0.91)	%
Tax-exempt income from bank-owned life insurance	(1,565)		(1.59)	%	(1,370)		(2.01)	%	(1,023)		(1.33)	%
Other	92		0.09	%	443		0.65	%	293		0.38	%


Other adjustments	16		—	%	(250)		(0.36)	%	133		0.17	%
Total	$	20,801	21.16	%	$	14,627	21.50	%	$	18,153	23.63	%

Schedule of the tax effects of temporary differences giving rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below. Net deferred tax assets are included in other assets on the Company's consolidated balance sheets.


	December 31,
(Dollars in thousands)	2025		2024
Deferred tax assets
Lease liability	$	6,839	$	8,530
Allowance for credit losses	12,790		12,643
Accrued expenses	3,497		2,576
Employee retirement benefits	1,785		1,765
Federal and state tax credit carryforwards	—		1,590



State net operating loss carryforwards	2,986		2,890
Deferred compensation	4,836		4,207

Premises and equipment	4,173		4,460

Other	3,359		1,667
Total deferred tax assets	40,265		40,328

Deferred tax liabilities
Right-of-use lease asset	6,644		8,210
Intangible assets	2,321		2,257




Available-for-sale and held-to-maturity investment securities	1,242		5,749
Unamortized loan cost	2,460		2,605
Other	607		575
Total deferred tax liabilities	13,274		19,396

Less: Deferred tax valuation allowance	3,374		3,106

Net deferred tax assets	$	23,617	$	17,826

Schedule of Income Tax Payments

Income tax payments, net of refunds, by jurisdictions is as follows for the periods presented:


	Year Ended December 31,
(Dollars in thousands)	2025		2024		2023
Income tax payments, net of refunds, by jurisdiction:
Federal	$	20,466	$	(8,712)	$	7,283
Hawaii	—		(593)		—

Other	886		92		30
Total	$	21,352	$	(9,213)	$	7,313