Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Cash paid for taxes for the years ended December 31 is as follows:


	2025		2024		2023
	(dollars in thousands)
Federal	$	33,500	$	31,000	$	36,250
States
Other*	1,162		1,185		1,380
Foreign	—		—		—
Total cash paid for taxes	34,662		32,185		37,630

* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.

^[1]

Schedule of Components of Income Tax Provision (Benefit)

The income tax provision for the years ended December 31 is as follows:


	2025		2024		2023
	(dollars in thousands)
Current tax provision:
Federal	$	34,600	$	31,220	$	32,167
State	1,443		1,002		936
Total current tax provision	36,043		32,222		33,103
Deferred tax provision (benefit):
Federal	3,152		3,412		7,488

State	(139)		2		(99)
Total deferred tax provision	3,013		3,414		7,389
Total tax provision	$	39,056	$	35,636	$	40,492

Schedule of Effective Income Tax Rate Reconciliation

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:


	2025				2024				2023
	Amount		% of Pretax Income		Amount		% of Pretax Income		Amount		% of Pretax Income
	(dollars in thousands)
Federal Income tax at statutory rate	$	40,185	21	%	$	37,424	21	%	$	41,487	21	%
State and local income tax, net of federal benefit*	1,030		1		793		—		725		—
Tax credits
Low income housing tax credits**	(294)		—		(354)		—		(381)		—
Other	(10)		—		(4)		—		(38)		—
Nontaxable or nondeductible items
Tax-exempt interest income, net	(900)		—		(835)		—		(812)		—
Income from bank owned life insurance	(1,444)		(1)		(1,336)		(1)		(1,024)		(1)
Other	614		—		457		—		660		—
Other adjustments	(125)		—		(509)		—		(125)		—
Effective income tax rate	$	39,056	21	%	$	35,636	20	%	$	40,492	20	%

* State taxes in Delaware, Indiana, Kentucky, New Jersey, New York made up the majority (greater than 50 percent) of the tax effect in this category for 2025. State taxes in Delaware, Kentucky, New Jersey, New York made up the majority (greater than 50 percent) of the tax effect in this category for 2024. State taxes in Delaware, Illinois, New Jersey, New York and New York City made up the majority (greater than 50 percent) of the tax effect in this category for 2023.

** The benefit is net of associated investment impacts such as proportional amortization and benefit of flow through losses.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:


	2025		2024
	(dollars in thousands)
Deferred tax assets:
Lease liability	$	9,175	$	9,561
Allowance for credit losses	26,980		25,459
Postretirement benefits other than pensions	89		201


Unrealized loss on securities available for sale	17,822		28,023
Net operating loss carryforward	60		61


Deferred compensation	3,289		3,008

Accrued interest on nonaccrual loans	763		1,088



Accrued incentives	3,949		3,295
Unfunded loan commitments & other reserves	1,757		879


Purchase accounting adjustments	3,889		4,001

Other	1,127		744
Total deferred tax assets	68,900		76,320
Deferred tax liabilities:

Loan origination fees and costs	(4,268)		(2,615)

Right of use asset	(8,215)		(8,601)

Depreciation of assets	(2,608)		(1,586)
Section 197 intangibles	(4,019)		(3,175)
Purchase accounting adjustments	(3,231)		(2,755)
Other	(695)		(718)
Total deferred tax liabilities	(23,036)		(19,450)
Net deferred tax asset	$	45,864	$	56,870

[1]	* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold