INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

The components of income tax expense for the years ended December 31, 2024 and 2023, were as follows:


	Years ended December 31,
		2024		2023
Current income tax expense/(benefit):
Federal		$	4,637	$	1,251
State		2,799		1,593
Total current expense/(benefit)		7,436		2,844
Deferred income tax expense/(benefit):
Federal		9,076		(4,318)
State		1,327		(482)
Total deferred expense/(benefit)		10,403		(4,800)
Total income tax expense/(benefit)		$	17,839	$	(1,956)

Schedule of effective income tax rate reconciliation

For the years ended December 31, 2024 and 2023, income taxes for financial reporting purposes differ from the amount computed by applying the statutory federal income tax rate of 21% as shown in the following table:


	Years ended December 31,
		2024			2023
Tax on income computed at statutory federal income tax rate		$	14,425		9,528
Increase (decrease) in taxes resulting from:
State income tax, net of federal tax effect		3,538			911
Non-deductible expenses		(148)			788
Realization of net operating loss carryforwards		—			(7,430)
DTA realization due to change in taxpayer status		—			(5,550)
Other, net		24			(203)
Income tax expense/(benefit)		$	17,839		(1,956)
Effective tax rate		25.97		%	(4.31)	%

Schedule of deferred tax assets and liabilities

Significant components of the Company’s net deferred tax asset at December 31, 2024 and 2023 are listed below:


	December 31, 2024		December 31, 2023
Deferred tax assets:
Allowance for Credit Losses	$	7,914	$	3,313
Lease Liabilities	1,737		1,832
Other	2,757		1,669
Purchase Accounting, net	183		331
Stock Compensation	1,134		396
Loans	—		2,677
Goodwill and Intangible Assets	217		—
Federal and state net operating losses, net of federal tax effect	201		2,428
Total deferred tax assets	14,143		12,646
Deferred tax liabilities:
Investments	2,481		650
Servicing Rights	6,234		2,737
Right of Use Assets	1,488		1,502
Goodwill and Intangible Assets	—		2,330
Loans	6,069		—
Other	115		197
Total deferred tax liabilities	16,387		7,416
Net deferred tax asset (liability)	$	(2,244)	$	5,230