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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 12 - Income Taxes
All of the Company’s Income before income taxes as reported in the Consolidated Statements of Income for the years ended December 31, 2025, 2024, and 2023 is attributable to domestic operations. The provision for income taxes is as follows:
 For the Year Ended December 31,
(In thousands)202520242023
Current
Federal$24,460 $19,415 $14,716 
State5,125 5,887 6,061 
Deferred
Federal9,394 8,882 9,524 
State2,649 670 (82)
 $41,628 $34,854 $30,219 
The difference between the total expected tax expense (computed by applying the U.S. Federal tax rate of 21% to pretax income) and the reported income tax provision relating to income before income taxes is as follows:
 For the Year Ended December 31,
(Dollars in thousands)202520242023
AmountRateAmountRateAmountRate
U.S. Federal statutory tax$39,166 21.0 %$32,727 21.0 %$28,193 21.0 %
Increase (decrease) resulting from the effects of:
Tax Credits
LIHTCs1
(1,153)(0.6)(641)(0.4)(402)(0.3)
Nontaxable or nondeductible items
Tax exempt interest on loans and securities2
(2,171)(1.2)(852)(0.5)(639)(0.5)
Income from BOLI(2,594)(1.4)(2,108)(1.3)(2,217)(1.7)
Other2,239 1.3 549 0.3 561 0.5 
Federal tax provision35,487 19.1 29,675 19.1 25,496 19.0 
State tax provision, net of federal income tax effect3
6,141 3.2 5,179 3.3 4,723 3.5 
Provision for income tax expense$41,628 22.3 %$34,854 22.4 %$30,219 22.5 %
1Tax credit, net of amortization and other tax benefits.
2Tax exempt interest net of interest expense disallowance.
3State taxes from Florida made up the majority (greater than 50%) of the tax effect in this category.
 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following is a summary of the significant components of the Company's DTAs and liabilities as of:
 December 31,
(In thousands)20252024
ACL$49,225 $38,093 
OREO198 220 
Accrued stock compensation4,423 4,296 
Federal tax loss carryforward2,075 2,364 
State tax loss carryforward952 1,160 
Lease liabilities15,795 11,334 
Net unrealized securities losses23,795 49,446 
Deferred compensation4,028 3,118 
Accrued interest and fee income24,359 22,244 
Other11,103 4,951 
Gross DTAs135,953 137,226 
Less: Valuation allowance— — 
DTAs net of valuation allowance135,953 137,226 
CDI(43,517)(18,040)
Net unrealized derivatives (gains) losses(78)9 
Premises and equipment(6,987)(841)
ROUAs(14,681)(10,375)
Other(4,111)(4,990)
Gross deferred tax liabilities(69,374)(34,237)
Net DTAs$66,579 $102,989 
Included in the table above is the effect of temporary differences associated with the Company's investments in debt securities accounted for under ASC Topic 320, Investments - Debt Securities, for which no deferred tax expense or benefit was recognized. These items are recorded as AOCI in the shareholders' equity section of the consolidated balance sheet. In 2025, net unrealized losses on debt securities of $100.9 million resulted in a DTA of $23.8 million. In 2024, unrealized losses of $207.3 million resulted in a DTA of $49.4 million.
Management assesses the necessity of a valuation allowance recorded against DTAs at each reporting period. The determination of whether a valuation allowance for net DTAs is appropriate is subject to considerable judgment and requires an evaluation of positive and negative evidence. Based on an assessment of relevant evidence, including favorable trending in asset quality and certainty regarding the amount of future taxable income that the Company forecasts, management concluded that it was more likely than not that its net DTAs will be realized based upon future taxable income. Management's determination in the realization of projected future taxable income is based upon analysis of the Company's risk profile and its trending financial performance, including credit quality. The Company believes it can reasonably predict future results of operations that result in taxable income at sufficient levels over the future period of time that the Company has available to realize its net DTA.
Management expects to realize the $66.6 million in net DTAs well in advance of the statutory carryforward period. At December 31, 2025, approximately $2.1 million of DTAs related to federal net operating losses which will expire in annual installments beginning in 2029 through 2032. Additionally, $1.0 million of the DTAs related to state net operating losses which will expire in annual installments beginning in 2029 through 2034. Remaining DTAs are not related to net operating losses or credits and therefore, have no expiration date.
The Company recognizes interest and penalties, as appropriate, as part of the provisioning for income taxes. No interest or penalties were accrued at December 31, 2025.
The Company has no unrecognized income tax benefits or provisions due to uncertain income tax positions. No federal or state income tax return examinations are currently in process. The following are the major tax jurisdictions in which the Company operates and the earliest tax year, exclusive of the impact of the net operating loss carryforwards, subject to examination:
Jurisdiction Tax Year
United States of America2022
Florida2022