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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)
The following table presents the composition of income tax expense (benefit) for the years ended December 31:
(dollars in thousands)202520242023
Federal
Current$32,403 $32,536 $33,070 
Deferred185 (31)459 
Total Federal32,588 32,505 33,529 
State and Local
Current1,132 1,313 352 
Deferred(10)(265)142 
Total State and Local1,122 1,048 494 
Total Federal and State(1)
$33,710 $33,553 $34,023 
[1]With the adoption of PAM on January 1, 2024, the amortization related to LIHTC and HTC equity investments is recognized in income tax expense in the Consolidated Statements of Net Income in 2025 and 2024 and other noninterest expense in 2023.
Schedule of Statutory to Effective Tax Rate Reconciliation ASU 2023-09 was adopted effective January 1, 2025. This ASU requires enhanced disclosures and disaggregation of the effective tax rate. This ASU was adopted on a prospective basis, therefore prior period disclosures have not been adjusted. The following tables present a reconciliation of the statutory tax rate to the effective tax rate under the applicable disclosure guidance for the years ended December 31:
(dollars in thousands)
2025
U.S. Federal Statutory Tax Rate$35,267 21.0 %
State and Local Tax, net of federal income tax effect(1)
829 0.5 %
Tax Credits
Low income housing and historic tax credits(2)
(1,032)(0.6)%
Nontaxable or Nondeductible Items
Tax-exempt interest, net(1,295)(0.8)%
Bank owned life insurance(451)(0.3)%
Changes in Unrecognized Tax Benefits58 — %
Other Adjustments
Other334 0.2 %
Effective Tax Rate$33,710 20.1 %
(1) State taxes in Maryland and New York made up the majority (greater than 50 percent) of the tax effect in this category.
(2) Includes tax credits net of amortization and other tax benefits.
20242023
Statutory tax rate21.0 %21.0 %
Tax-exempt interest, net(0.8)%(0.8)%
Low income housing tax credits, net(1)
(0.2)%(1.5)%
Bank owned life insurance(0.3)%(0.2)%
Other0.7 %0.5 %
Effective Tax Rate(1)
20.4 %19.0 %
[1] With the adoption of PAM on January 1, 2024, the amortization related to LIHTC and HTC equity investments is recognized in income tax expense in the Consolidated Statements of Net Income in 2024 and other noninterest expense in 2023.
Schedule of Significant Components of Temporary Differences
The following table presents significant components of our temporary differences as of the dates presented:
December 31,
(dollars in thousands)20252024
Deferred Tax Assets:
Allowance for credit losses and other reserves$21,455 $22,953 
Net unrealized holding losses on securities available-for-sale7,509 15,431 
Lease liabilities9,824 10,271 
State net operating loss carryforwards4,105 3,782 
Net unrealized losses on interest rate swaps436 2,063 
Cumulative adjustment to funded status of pension3,495 3,606 
Other employee benefits5,450 4,688 
Depreciation on premises and equipment64 5 
Capital loss carryforward1,125 1,300 
Other1,225 1,243 
Deferred Tax Assets54,688 65,342 
Less: Valuation allowance(4,105)(3,782)
Total Deferred Tax Assets50,583 61,560 
Deferred Tax Liabilities:
Right-of-use lease assets(8,323)(8,825)
Deferred loan income, net(5,132)(5,216)
Prepaid pension(2,780)(3,131)
Purchase accounting adjustments(1,477)(1,650)
Mortgage servicing rights(122)(61)
Partnership investments
(354)(491)
Other(157)(113)
Total Deferred Tax liabilities(18,345)(19,487)
Net Deferred Tax Asset$32,238 $42,073 
Schedule of Reconciliation of Change in Federal and State Gross Unrecognized Tax Benefits
The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31:
(dollars in thousands)202520242023
Balance at beginning of year$2,086 $1,940 $1,648 
Prior period tax positions33 146 (434)
Current period tax positions— — 726 
Balance at End of Year$2,119 $2,086 $1,940 
Amount That Would Affect the Effective Tax Rate if Recognized$1,674 $1,648 $1,551