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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following presents a summary of the Company’s income tax provisions for the years ended December 31:

			Current						Deferred						Total
			(Dollars in thousands)
2025
Federal			$	4,191					$	(2,015)					$	2,176
State			5,254						8,259						13,513
			$	9,445					$	6,244					$	15,689
2024
Federal			$	14,475					$	3,760					$	18,235
State			13,576						1,523						15,099
			$	28,051					$	5,283					$	33,334
2023
Federal			$	22,076					$	3,158					$	25,234
State			17,998						982						18,980
			$	40,074					$	4,140					$	44,214

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the difference between the U.S. federal statutory income tax rate and the effective tax rate is shown in the following table for the year ended December 31, 2025:

			Year Ended December 31, 2025
			Amount						Percent
			(Dollars in thousands)
Statutory U.S. federal income tax rate			$	16,228					21.00		%
U.S. state and local income taxes, net of U.S. federal income tax effect (1) (2)			10,628						13.75		%
Tax credits
Energy tax credit			(38,182)						(49.41)		%
Low income housing tax credit			(8,587)						(11.11)		%
Energy tax credit investment amortization expense, net of benefit from tax losses			35,371						45.77		%
Nontaxable or nondeductible items
BOLI			(683)						(0.88)		%
Excess tax expense on executive compensation limitation			1,161						1.50		%
FDIC premium			461						0.60		%
Tax exempt municipal bonds and loans			(82)						(0.11)		%
Other			838						1.08		%
Changes in uncertain tax positions			(15)						(0.02)		%
Adjustments on deferred taxes (3)			(1,692)						(2.19)		%
Other			243						0.32		%
Effective income tax rate			$	15,689					20.30		%

__________________________________

(1)    State taxes in California made up the majority (greater than 50%) of the tax effect in this category.

(2)    During the year ended December 31, 2025, the Company recorded an increase in income tax expense of approximately $4.8 million related to the remeasurement of deferred tax assets and liabilities following the enactment of a change in California state income tax apportionment methodology. The adjustment reflects the revised allocation of future taxable income to the state and is included in the effective tax rate reconciliation in the state and local income taxes section.

(3)    During the year ended December 31, 2025, the Company recorded a discrete decrease in income tax expense of approximately $1.7 million related to the correction of prior period errors of deferred tax asset measurement. The adjustment reflects the federal portion of the resolution of prior modeling assumptions and is included in the effective tax rate reconciliation within other reconciling items, with $710 thousand recorded in the state tax reconciling item.

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the table below is a reconciliation of the components that caused the Company’s provision for income taxes to differ from amounts computed by applying the U.S. federal statutory rate of 21%:

			Year Ended December 31,
			2024						2023
Statutory federal income tax rate			21.00		%				21.00		%
State taxes-net of federal tax effect			8.74		%				8.79		%
Nondeductible transaction costs			0.60		%				—		%
Tax credits and benefits, net of amortization expenses			(7.25)		%				(4.67)		%
BOLI			(0.28)		%				(0.24)		%
Tax exempt municipal bonds and loans			(0.08)		%				(0.82)		%
State tax rate change			0.93		%				0.02		%
Changes in uncertain tax positions			0.21		%				(0.59)		%
Other			1.20		%				1.37		%
Effective income tax rate			25.07		%				24.86		%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2025 and 2024, comprised the following:

			December 31,
			2025						2024
			(Dollars in thousands)
Deferred tax assets:
Statutory bad debt deduction less than financial statement provision			$	46,841					$	47,626
Net operating loss carry-forward			7,018						1,100
Sale of investment in securities carry-forward			34,534						—
Investment security provision			—						468
State tax deductions			556						1,960
Accrued compensation			15						21
Deferred compensation			121						119
Nonaccrual loan interest			3,338						4,753
Non-qualified stock option and restricted share expense			1,815						2,754
Lease liabilities			18,187						13,945
Tax credits carry-forward			8,642						48
Purchase accounting fair value adjustment			51,924						—
Unrealized loss on securities AFS			60,404						95,025
Other			5,855						7,246
Total deferred tax assets			$	239,250					$	175,065
Deferred tax liabilities:
Purchase accounting fair value adjustment			$	—					$	(8,331)
Depreciation			(5,267)						(95)
FHLB stock dividends			(95)						(77)
Deferred loan costs			(7,531)						(6,981)
State taxes deferred and other			(8,222)						(3,376)
Prepaid expenses			(2,106)						(2,834)
Amortization of intangibles			(14,010)						(846)
ROU assets			(17,630)						(12,481)
Total deferred tax liabilities			$	(54,861)					$	(35,021)
Net deferred tax assets			$	184,389					$	140,044

Summary of Operating Loss Carryforwards

A summary of the Company’s net operating loss carry-forwards at December 31, 2025 and 2024, is as follows:

			Federal																		State
			Remaining Amount						Expires						Annual Limitation						Remaining Amount						Expires						Annual Limitation
																																							(Dollars in thousands)
2025
Saehan Bank (acquired by Wilshire)			$	1,131					2030						$	226					$	1,583					2032						$	226
Pacific International Bank			2,730						2032						420						—						N/A						—
Territorial Bancorp			19,910						N/A						2,691						20,011						N/A						2,691
Total			$	23,771											$	3,337					$	21,594											$	2,917
2024
Saehan Bank (acquired by Wilshire)			$	1,357					2030						$	226					$	1,809					2032						$	226
Pacific International Bank			3,150						2032						420						—						N/A						—
Total			$	4,507											$	646					$	1,809											$	226

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2025 and 2024, is as follows:

			Year Ended December 31,
			2025						2024
			(Dollars in thousands)
Balance at January 1,			$	696					$	469
Additions based on tax positions related to prior years			59						311
Expiration of statute of limitations			(119)						(84)
Balance at December 31,			$	636					$	696

Summary of Income Taxes Paid, Net of Refunds

The following table summarizes the components of income taxes paid, net of refunds, all of which were domestic, for the year ended December 31, 2025:

			Year Ended December 31, 2025
			(Dollars in thousands)
U.S. federal			$	—
U.S. state and local
New York State			1,105
Hawaii			500
New York City			333
Massachusetts			235
Texas			228
California			(772)
Other states and local			940
Total income taxes paid			$	2,569

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