Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Year Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Unrecognized tax benefits at beginning of year |
|
$ |
— |
|
|
$ |
258 |
|
|
$ |
258 |
|
Gross decreases for tax positions of prior years |
|
|
— |
|
|
|
(258 |
) |
|
|
— |
|
Unrecognized tax benefits at end of year |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
258 |
|
|
| Summary of Provision for Income Taxes |
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|
|
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|
|
|
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|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
U.S. income before tax |
|
$ |
107,927 |
|
|
$ |
88,605 |
|
|
$ |
114,581 |
|
Foreign income before tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total income before taxes |
|
$ |
107,927 |
|
|
$ |
88,605 |
|
|
$ |
114,581 |
|
Income tax expense (benefit) from continuing operations was as follows:
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Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Current expense: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
28,287 |
|
|
$ |
18,139 |
|
|
$ |
26,336 |
|
State |
|
|
13,526 |
|
|
|
11,704 |
|
|
|
13,610 |
|
Total current expense |
|
|
41,813 |
|
|
|
29,843 |
|
|
|
39,946 |
|
Deferred expense (benefit): |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(7,911 |
) |
|
|
(2,009 |
) |
|
|
(4,980 |
) |
State |
|
|
(2,064 |
) |
|
|
(1,430 |
) |
|
|
(426 |
) |
Total deferred expense |
|
|
(9,975 |
) |
|
|
(3,439 |
) |
|
|
(5,406 |
) |
Income tax expense |
|
$ |
31,838 |
|
|
$ |
26,404 |
|
|
$ |
34,540 |
|
|
| Summary of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities were as follows:
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As of December 31, |
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|
|
2025 |
|
|
2024 |
|
|
|
(in thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
Provision for credit losses |
|
$ |
19,771 |
|
|
$ |
20,828 |
|
Purchase accounting |
|
|
1,639 |
|
|
|
1,977 |
|
Net operating loss carryforward |
|
|
13,452 |
|
|
|
13,459 |
|
Unrealized losses on securities available for sale |
|
|
16,765 |
|
|
|
28,638 |
|
Lease liability |
|
|
11,850 |
|
|
|
11,845 |
|
State taxes |
|
|
2,520 |
|
|
|
2,520 |
|
Other |
|
|
4,347 |
|
|
|
4,548 |
|
Total deferred tax assets |
|
|
70,344 |
|
|
|
83,815 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Mark to market |
|
|
(17,374 |
) |
|
|
(30,018 |
) |
Depreciation |
|
|
(394 |
) |
|
|
(885 |
) |
Leases - right of use assets |
|
|
(8,814 |
) |
|
|
(10,616 |
) |
Other |
|
|
(4,854 |
) |
|
|
(2,624 |
) |
Total deferred tax liabilities |
|
|
(31,436 |
) |
|
|
(44,143 |
) |
Valuation allowance |
|
|
(1,488 |
) |
|
|
(1,488 |
) |
Net deferred tax assets |
|
$ |
37,420 |
|
|
$ |
38,184 |
|
|
| Reconciliation between Federal Statutory Income Tax Rate and Effective Tax Rate |
A reconciliation between the federal statutory income tax rate and the effective tax rate is shown in the following table, as reported in accordance with ASU 2023-09, on a retrospective basis:
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|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal statutory income tax rate |
|
$ |
22,665 |
|
|
|
21.00 |
% |
|
$ |
18,607 |
|
|
|
21.00 |
% |
|
$ |
24,062 |
|
|
|
21.00 |
% |
State and local income taxes, net of Federal income tax effect (1) |
|
|
8,675 |
|
|
|
8.04 |
% |
|
|
7,773 |
|
|
|
8.77 |
% |
|
|
10,505 |
|
|
|
9.20 |
% |
Tax credits: |
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|
|
|
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Federal low income housing tax credit |
|
|
(1,573 |
) |
|
|
(1.46 |
)% |
|
|
(1,468 |
) |
|
|
(1.66 |
)% |
|
|
(1,872 |
) |
|
|
(1.63 |
)% |
Nontaxable or nondeductible items |
|
|
(872 |
) |
|
|
(0.81 |
)% |
|
|
(393 |
) |
|
|
(0.44 |
)% |
|
|
38 |
|
|
|
0.00 |
% |
Other adjustments: |
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|
|
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|
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|
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|
Amortization of low income housing tax credit |
|
|
2,502 |
|
|
|
2.32 |
% |
|
|
1,816 |
|
|
|
2.05 |
% |
|
|
1,874 |
|
|
|
1.64 |
% |
Other |
|
|
441 |
|
|
|
0.41 |
% |
|
|
69 |
|
|
|
0.08 |
% |
|
|
(67 |
) |
|
|
(0.06 |
)% |
Effective tax rate |
|
$ |
31,838 |
|
|
|
29.50 |
% |
|
$ |
26,404 |
|
|
|
29.80 |
% |
|
$ |
34,540 |
|
|
|
30.15 |
% |
(1)State income tax in California make up the majority (greater than 50%) of the tax effect in this category.
Income taxes paid were as follows:
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|
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|
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|
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|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
22,500 |
|
|
$ |
26,250 |
|
|
$ |
9,700 |
|
California |
|
|
10,141 |
|
|
|
12,150 |
|
|
|
5,250 |
|
All other states |
|
|
3,184 |
|
|
|
3,274 |
|
|
|
1,586 |
|
Total income taxes paid |
|
|
35,825 |
|
|
|
41,674 |
|
|
|
16,536 |
|
Refunds, Federal |
|
|
(63 |
) |
|
|
— |
|
|
|
— |
|
Refunds, all other states |
|
|
(105 |
) |
|
|
(109 |
) |
|
|
(131 |
) |
Total income taxes paid, net of refunds |
|
$ |
35,657 |
|
|
$ |
41,565 |
|
|
$ |
16,405 |
|
|