Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income Before Income Tax Expense (Benefit)

The following table presents income (loss) before income tax expense (benefit):


(Dollars in thousands)
Years ended December 31,	2025	2024	2023
Income (Loss) Before Income Tax Expense (Benefit):
U.S.	$67,413	($38,818)	$56,481
Total income (loss) before income tax expense (benefit)	$67,413	($38,818)	$56,481

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense (benefit):


(Dollars in thousands)
Years ended December 31,	2025	2024	2023
Current Tax Expense:
U.S. Federal	$2,246	$5,166	$10,494
U.S. State	312	812	1,501
Total current tax expense	2,558	5,978	11,995
Deferred Tax Expense (Benefit):
U.S. Federal	10,392	(14,618)	412
U.S. State	2,219	(2,119)	(4,102)
Total deferred tax expense (benefit) (1)	12,611	(16,737)	(3,690)
Total income tax expense (benefit)	$15,169	($10,759)	$8,305

(1) The deferred income tax benefit recognized in 2024 was largely associated with loans that were reclassified to held for sale and written down to fair value in December 2024. The sale of these loans was completed on January 24, 2025.

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the reasons for the differences:


Years ended December 31,	2025			2024			2023
(Dollars in thousands)	Amount	Rate		Amount	Rate		Amount	Rate
U.S. federal statutory income tax	$14,157	21.0	%	($8,152)	21.0	%	$11,861	21.0	%

State and local income tax expense (benefit), net of federal tax effect (1)	2,212	3.3		(1,037)	2.7		(2,145)	(3.7)
Foreign tax effects	—	—		—	—		—	—
Effect of changes in tax laws or rates enacted in the current period	—	—		—	—		—	—
Effect of cross-border tax laws	—	—		—	—		—	—
Tax credits:
Investments in low-income housing limited partnerships	(1,976)	(2.9)		(1,905)	4.9		(1,812)	(3.2)
Changes in valuation allowance	—	—		—	—		—	—
Nontaxable or nondeductible items:
BOLI	(703)	(1.0)		(639)	1.6		(732)	(1.3)
Investments in low-income housing limited partnerships proportional amortization and other benefits	1,594	2.3		1,485	(3.8)		1,455	2.6
Tax-exempt income	(1,145)	(1.7)		(1,115)	2.9		(1,077)	(1.9)
Nondeductible interest expense	592	0.9		655	(1.7)		534	0.9
Other	438	0.6		(51)	0.1		221	0.3
Changes in unrecognized tax benefits	—	—		—	—		—	—







Total income tax expense (benefit)	$15,169	22.5	%	($10,759)	27.7	%	$8,305	14.7	%

(1) Massachusetts taxes represent the majority (greater than 50%) of state and local tax expense (benefit). Also, 2023 includes the impact of a revaluation of deferred tax assets and liabilities due to a Commonwealth of Massachusetts tax bill enacted into law.

Schedule of Income Taxes Paid, Net of Refunds

The following table presents information regarding income taxes paid, net of refunds:


Years ended December 31,		2025	2024	2023
U.S. federal tax		$—	$5,700	$8,500
U.S. state tax (1):	Massachusetts	—	1,300	1,225
	Connecticut	(170)	—	—
	New York	21	150	130


	All other	7	86	71
Income taxes paid, net of refunds		($142)	$7,236	$9,926

(1)Amounts separately stated for jurisdictions exceeding 5% of total income tax paid (net of refunds).

Schedule of Deferred Tax Assets and Liabilities

The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities:


(Dollars in thousands)
December 31,	2025	2024
Deferred Tax Assets:
Net unrealized losses on available for sale debt securities	$23,716	$33,646
Operating lease liabilities	9,681	7,469
Allowance for credit losses on loans	9,309	10,595
Deferred compensation liabilities	5,548	5,439
State net operating loss carryforwards	3,559	2,840
Defined benefit pension obligations	3,255	1,246
Share-based compensation	1,907	1,779
Deferred loan origination fees	1,673	1,857
Federal tax credit carryforwards	1,535	—

Cash flow hedges	965	2,595
Capital loss carryforward	368	1,550
Loss on portfolio loans reclassified to held for sale	—	15,093

Other	1,822	2,068
Deferred tax assets	63,338	86,177
Valuation allowance	(4,396)	(3,780)
Deferred tax assets, net of valuation allowance	58,942	82,397
Deferred Tax Liabilities:
Operating lease ROU assets	(8,976)	(6,803)
Deferred loan origination costs	(5,772)	(6,784)
Non-elective employer 401(k) contributions	(2,403)	—
Loan servicing rights	(1,639)	(1,936)
Depreciation of premises and equipment	(1,257)	(1,956)
Deferred compensation assets	(786)	(577)
Amortization of intangibles	(546)	(729)



Other	(711)	(590)
Deferred tax liabilities	(22,090)	(19,375)
Net deferred tax asset	$36,852	$63,022