Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Cash Paid For Income Taxes, Net of Refunds

Upon adoption of ASU 2023-09, as described in Note 1, "Summary of Significant Accounting Policies," cash paid for income taxes, net of refunds, during the year ended December 31, 2025 was as follows:


	December 31, 2025
Federal	$	9,850
States
New York	723
Other	76
Foreign	—
Total cash paid for income taxes, net of refunds	$	10,649

Schedule of Income Tax Expense

The following is a summary of income tax expense from continuing operations for the years ended December 31, 2025, 2024, and 2023:


	December 31, 2025		December 31, 2024		December 31, 2023
Current tax expense:
Federal	$	10,526	$	12,863	$	11,446
State	740		1,104		1,252
Total	11,266		13,967		12,698
Deferred tax expense (benefit):
Federal	4,828		(1,124)		1,110
State	240		(59)		1
Total	5,068		(1,183)		1,111
Income tax expense from continuing operations	$	16,334	$	12,784	$	13,809

Schedule of Reconciliation of Income Tax Attributable to Pre-Tax Income at Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense in accordance with ASU 2023-09 is as follows:


	December 31, 2025
	Amount		%
Tax computed at the statutory federal rate	$	17,318	21.0	%
State income taxes, net of federal benefit (1)	774		0.9
Tax credits
Low income housing tax credits (2)	61		0.1
Nontaxable or nondeductible items
Tax exempt interest, net	(1,232)		(1.5)
Bank owned life insurance	(1,002)		(1.2)
Other	463		0.6
Other adjustments	(48)		(0.1)
Income tax expense	$	16,334	19.8	%

(1) State taxes in New York make up the majority (greater than 50%) of the tax effect in this category.

(2) Low income housing tax credits includes the tax credit benefit net of proportional amortization.

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense before the adoption of ASU 2023-09 is as follows:


	December 31, 2024		%		December 31, 2023		%
Tax at statutory rate	$	14,146	21.0	%	$	15,084	21.0	%
Tax exempt income, net	(1,139)		(1.7)		(1,090)		(1.5)

Bank owned life insurance	(653)		(1.0)		(619)		(0.9)

Tax credits, net of amortization	(160)		(0.2)		(173)		(0.3)
Effect of state tax	826		1.2		990		1.4
Other	(236)		(0.4)		(383)		(0.5)
Income tax expense	$	12,784	18.9	%	$	13,809	19.2	%

Schedule of Components of Net Deferred Tax Asset

The following table sets forth deferred taxes as of December 31, 2025 and 2024:


	December 31, 2025		December 31, 2024
Deferred tax assets:
Allowance for credit losses	$	14,760	$	10,895
Fair value adjustments – business combination	10,184		685
Deferred compensation	5,441		4,026

Net operating loss carryover	2,406		493
Post-retirement benefits	—		509
Unrealized loss on equity securities	203		197
Nonaccrual loan interest	722		563
Accrued expenses	2,976		609
Deferred fees and costs	—		25
Unrealized loss on securities available-for-sale	7,262		10,852
Unrealized loss on securities held-to-maturity	837		963
Lease liability	13,570		12,360

Other	598		547
Total	58,959		42,724
Deferred tax liabilities:

Premises and equipment	3,134		3,054

Intangibles – section 197	2,354		2,475
Mortgage servicing rights	571		278

Right of use lease asset	12,858		11,839
Deferred fees and costs	195		—
Partnership investments	914		—
Post-retirement benefits	1,519		—
Other	691		633
Total	22,236		18,279
Net deferred tax asset	$	36,723	$	24,445