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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Expense | Federal and state income tax expense consists of the following for the years ended December 31:
(dollars in thousands) |  | 2024 |  | 2023 |  | 2022
Current federal income tax expense |  | $ | 9,897 |  |  | $ | 25,291 |  |  | $ | 37,182 |
Current state income tax expense |  | 4,297 |  |  | 5,072 |  |  | 5,008 |
Total current tax expense |  | 14,194 |  |  | 30,363 |  |  | 42,190 |
Deferred federal income tax (benefit) expense |  | 2,823 |  |  | (2,966) |  |  | 3,532 |
Deferred state income tax (benefit) expense |  | (222) |  |  | (411) |  |  | 3,028 |
Total deferred tax (benefit) expense |  | 2,601 |  |  | (3,377) |  |  | 6,560 |
Total income tax expense |  | $ | 16,795 |  |  | $ | 26,986 |  |  | $ | 48,750 |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The table below summarizes significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023:
(dollars in thousands) |  | 2024 |  | 2023
Deferred tax assets |  |  |  |
Allowance for credit losses |  | $ | 27,998 |  |  | $ | 21,281 |
Deferred loan fees and costs |  | 4,551 |  |  | 6,372 |
Unrealized loss on securities available-for-sale |  | 34,656 |  |  | 39,671 |
Unrealized loss on securities held-to-maturity |  | 10,160 |  |  | 11,725 |
LIHTC and ITC Tax Credits |  | 5,793 |  |  | — |
Leases |  | 5,774 |  |  | 5,713 |
Supplemental executive retirement and death benefit agreements |  | 2,075 |  |  | 2,066 |
Stock-based compensation |  | 1,785 |  |  | 2,003 |
Premises and equipment |  | 217 |  |  | — |
Unrealized loss on interest rate swap derivatives |  | — |  |  | 59 |
Net operating loss |  | 8,104 |  |  | 7,964 |
Other assets |  | 3,549 |  |  | 2,669 |
Gross deferred tax assets |  | 104,662 |  |  | 99,523 |
Valuation allowances |  | (7,715) |  |  | (7,428) |
Total deferred tax assets |  | 96,947 |  |  | 92,095 |
Deferred tax liabilities |  |  |  |
Leases |  | (4,483) |  |  | (4,703) |
Interest Rate Swaps & Derivatives |  | (602) |  |  | — |
Excess servicing |  | — |  |  | (561) |
Premises and equipment |  | — |  |  | (211) |
Other liabilities |  | (390) |  |  | — |
Total deferred tax liabilities |  | (5,475) |  |  | (5,475) |
Net deferred income tax assets |  | $ | 91,472 |  |  | $ | 86,620 |
Schedule of Reconciliation of Income Taxes | A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31, 2024, 2023 and 2022 follows:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Statutory federal income tax rate |  | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Increase (decrease) due to: |  |  |  |  |  |
State income taxes |  | (10.53) | % |  | 2.75 | % |  | 3.28 | %
Goodwill Impairment |  | (72.34) | % |  | — | % |  | — | %
Tax credits, net of amortization (1) |  | 11.37 | % |  | (1.32) | % |  | (0.80) | %
Tax-exempt interest and dividend income |  | 4.39 | % |  | (1.75) | % |  | (0.85) | %
Bank owned life insurance |  | 2.00 | % |  | (0.58) | % |  | (0.33) | %
Stock-based compensation expense |  | (3.07) | % |  | 0.22 | % |  | (0.08) | %
Change in unrecognized tax benefits |  | (3.63) | % |  | — | % |  | — | %
Return to provision and prior period adjustments |  | (3.83) | % |  | (0.24) | % |  | 1.33 | %
Non-deductible fines and penalties |  | — | % |  | — | % |  | 2.54 | %
Other |  | (0.90) | % |  | 1.08 | % |  | (0.39) | %
Effective tax rate |  | (55.54) | % |  | 21.16 | % |  | 25.70 | %
(1) Includes low income housing tax credit proportional amortization expense, net of tax of $5.7 million, $5.4 million and $5.3 million, in 2024, 2023 and 2022 respectively.
Schedule of Unrecognized Tax Benefits | The following table details the change in unrecognized tax benefits ("UTBs") for 2024:
|  | Year Ended December 31,
(dollars in thousands) |  | 2024 |  |  |  |
Balance at beginning of year |  | $ | — |  |  |  |  |
Gross increases - tax positions related to prior periods |  | 6,254 |  |  |  |  |
Gross decreases - tax positions related to prior periods |  | — |  |  |  |  |
Gross increases - tax positions related to the current period |  | 296 |  |  |  |  |
Settlements with tax authorities |  | — |  |  |  |  |
Lapse of statute of limitations |  | — |  |  |  |  |
Balance at end of year |  | $ | 6,550 |  |  |  |  |

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