For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2026

2025

2026

2025

% of

Pretax

 

Amount

 

Income

 

Amount

 

Income

 

Amount

 

Income

 

Amount

 

Income

(dollars in thousands)

U.S. federal statutory tax rate

$

8,399

21.0

%

$

8,517

21.0

%

$

24,210

21.0

%

$

20,419

21.0

%

State and local income taxes, net of federal income tax effect (*)

1,137

2.8

1,407

3.5

3,225

2.8

2,751

2.8

Tax credits

Low-income housing tax credits

(1,060)

(2.7)

(696)

(1.7)

(3,098)

(2.7)

(2,208)

(2.3)

Other credits

(49)

(0.1)

(67)

(0.2)

(145)

(0.1)

(202)

(0.2)

Nontaxable or nondeductible items

Tax exempt income, net

(7,726)

(19.3)

(8,475)

(20.9)

(22,715)

(19.7)

(23,940)

(24.6)

Interest disallowance

2,947

7.4

3,578

8.8

8,668

7.5

10,020

10.3

Bank-owned life insurance

(186)

(0.5)

(200)

(0.5)

(596)

(0.5)

(520)

(0.5)

Meals and entertainment

37

0.1

25

0.1

102

0.1

70

0.1

Other

(193)

(0.5)

(156)

(0.4)

(597)

(0.5)

(446)

(0.5)

Changes in unrecognized tax benefits

324

0.8

—

693

0.6

—

Other adjustments

Excess tax benefit on stock options exercised and restricted stock awards vested

(92)

(0.2)

(111)

(0.3)

(777)

(0.7)

(637)

(0.7)

Provision adjustment

—

153

0.1

373

0.5

Other

24

0.1

22

0.1

94

0.1

24

0.1

Effective tax rate

$

3,562

8.9

%

$

3,844

9.5

%

$

9,217

8.0

%

$

5,704

6.0

%

* State taxes in Iowa made up the majority (greater than 50 percent) of the tax effect in this category.