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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense (benefit) attributable to income from operations is summarized as follows:

(In thousands)CurrentDeferredTotal
2023
Federal$2,583 $381 $2,964 
State346 (815)(469)
Total$2,929 $(434)$2,495 
2022
Federal$19,238 $994 $20,232 
State4,409 (84)4,325 
Total$23,647 $910 $24,557 
2021
Federal$19,345 $1,485 $20,830 
State4,039 313 4,352 
Total$23,384 $1,798 $25,182 
The primary reasons for the differences between income tax expense and the amount computed by applying the statutory federal income tax rate to earnings are as follows:
202320222021
Statutory federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit(3.1)3.1 3.0 
Tax exempt income(9.4)(1.1)(1.2)
Excess benefits from equity-based compensation1.1 (0.3)(0.5)
Bank-owned life insurance income(3.0)(0.2)(0.4)
Surrender of Bank-owned life insurance 13.6 0.0 0.0 
Federal tax credit(0.8)0.0 0.0 
Non-Deductible Meals & Entertainment1.3 0.0 0.0 
Section 162(m) Limitation1.1 0.2 0.2 
Deductible ESOP Dividends under 404(k)(2.5)(0.3)(0.2)
All other1.5 0.0 0.1 
Total20.8 %22.4 %22.0 %

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows:

(In thousands)20232022
Deferred tax assets:
Allowance for credit losses$13,731 $12,387 
Lease liability7,267 8,535
Interest income on nonperforming loans992 503 
Compensation and benefits12,414 12,316 
Purchase accounting adjustments424 517 
Liabilities held at fair value54 56 
Deferred loan fees and costs1,111 1,053 
Net operating loss carryforwards491 4 
Other744 589 
Total$37,228 $35,960 
Deferred tax liabilities:
Prepaid pension11,813 11,528 
Right of use asset6,955 8,222
Depreciation3,505 3,767 
Intangibles1,600 1,489 
Leases2,688 2,617 
Taxable bank-owned life insurance policies1,834 0 
Contingent Commissions778 797 
Other855 774 
Total deferred tax liabilities$30,028 $29,194 
Net deferred tax asset at year-end7,200 6,766 
Net deferred tax asset at beginning of year6,766 7,676 
Decrease (increase) in net deferred tax asset434 (910)
Deferred tax (benefit) expense$(434)$910 
Net operating loss carryforwards for New York and New York City purposes of $8.6 million and $0.4 million were generated in 2023. These net operating losses do not begin to expire until 2043.

The above analysis does not include recorded deferred tax assets (liabilities) of $32.7 million and $58.6 million as of December 31, 2023 and 2022, respectively, related to net unrealized holdings losses/(gains) in the available-for-sale debt securities portfolio. In addition, the analysis excludes recorded deferred tax assets of $8.4 million and $9.8 million, as of December 31, 2023 and 2022, respectively, related to employee benefit plans.

Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income, and the projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessment, management determined that no valuation allowance was necessary at December 31, 2023 and 2022.

At December 31, 2023, December 31, 2022 and December 31, 2021, the Company had an insignificant amount of ASC 740-10 unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. The Company recognizes interest and penalties on unrecognized tax benefits in income tax expense in its Consolidated Statements of Income.

The Company is subject to U.S. federal income tax and income tax in New York and various state jurisdictions. All tax years ending after December 31, 2019 are open to examination by the taxing authorities.