INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

The following table summarizes income tax expense from continuing operations for the year ended December 31, 2025 as required by ASU 2023-09:

	2025
Current expense:
Federal	$	14,097
State	1,686
Total current expense	15,783
Deferred expense:
Federal	5,231
State	768
Total deferred expense	5,999
Income tax expense	$	21,782

The following table summarizes income tax expense for the years ended December 31, 2024 and 2023 prior to the adoption of ASU 2023-09:

	2024		2023
Current expense	$	6,623	$	10,021
Deferred benefit	(867)		(651)
Income tax expense	$	5,756	$	9,370

Summary of Reconciliation of Effective Income Tax Rate to Statutory Federal Rate

The following table reconciles the Company's effective income tax rate to its statutory federal rate for the year ended December 31, 2025 as required by ASU 2023-09:

	2025
	Amount		Percent
U.S. statutory federal tax rate	$	21,554	21.0	%
State income taxes, net of federal income tax effect (1)	1,939		1.9
Nontaxable and nondeductible items:
Tax-exempt interest income	(1,420)		(1.4)
Other nontaxable or nondeductible items	371		0.4
Tax credits (2)	(46)		—
Other	(616)		(0.7)
Effective income tax rate	$	21,782	21.2	%
(1) State income taxes in Maryland made up the majority (greater than 50%) of the tax effect in this category.
(2) The tax credits category includes the impact from proportional amortization and other tax benefits from the Company’s low income housing tax credit investments.

The following table reconciles the Company's effective income tax rate to its statutory federal rate for the years ended December 31, 2024 and 2023 prior to the adoption of ASU 2023-09:

	2024		2023
U.S. statutory federal tax rate	21.0	%	21.0	%
Increase (decrease) resulting from:
State income taxes, net of federal income tax effect	2.3		1.5
Tax-exempt interest income	(4.6)		(2.5)
Income from life insurance	(2.1)		(0.8)
Disallowed interest expense	2.8		1.1
Low-income housing credits and related expenses	(0.2)		(0.1)
Merger-related expenses	1.3		0.3
Share-based compensation and related expenses	(0.9)		(0.1)
Other	1.1		0.4
Effective income tax rate	20.7	%	20.8	%

Summary of Deferred Tax Assets and Liabilities

The following table summarizes the Company's deferred tax assets and liabilities at December 31, 2025 and 2024:

	2025		2024
Deferred tax assets:
Allowance for credit losses	$	10,728	$	11,116
Deferred compensation	1,793		1,849
Retirement and salary continuation plans	5,250		4,712
Share-based compensation	844		785
Off-balance sheet reserves	536		565
Nonaccrual loan interest	775		1,735
Net unrealized losses on AFS securities	4,364		8,014
Net unrealized losses on cash flow hedges	48		—
Purchase accounting adjustments	18,717		24,318
Bonus accrual	2,268		3,201
Right-of-use lease liabilities	3,312		3,248
Net operating loss carryforward	1,265		1,534
Other	489		2,618
Total deferred tax assets	50,389		63,695
Deferred tax liabilities:
Depreciation	530		643
Net deferred loan fees and costs	475		946
Net unrealized gains on cash flow hedges	—		259
Mortgage servicing rights	742		845
Purchase accounting adjustments	11,068		13,879
Right-of-use lease assets	3,132		3,157
Investment in partnerships	457		1,232
Other	54		87
Total deferred tax liabilities	16,458		21,048
Deferred tax asset, net	$	33,931	$	42,647

Summary of Income Taxes Paid, Net of Refunds Received, by Jurisdiction

The following table summarizes the income taxes paid, net of refunds received, by jurisdiction for the year ended December 31, 2025 as required by ASU 2023-09:

Jurisdiction	Amount
Federal	$	3,936
State (Maryland)	1,600
Total income taxes paid, net	$	5,536