v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Pretax income is entirely related to domestic activities, the Company did not have any foreign operations.
The components of the provision for income taxes for the years ended December 31, 2025, 2024, and 2023 are as follows:
Year Ended December 31,
(In thousands)202520242023
Current:
Federal$23,745 $24,444 $21,756 
State and local10,286 9,536 10,752 
34,031 33,980 32,508 
Deferred:
Federal1,062 2,594 279 
State and local615 2,581 3,965 
1,677 5,175 4,244 
Total income tax provision$35,708 $39,155 $36,752 
A reconciliation of the expected income tax expense at the statutory federal income tax rate of 21% to the Company’s actual income tax benefit and effective tax rate for the years ended December 31, 2025, 2024, and 2023 and is as follows:
Year Ended December 31,
202520242023
Amount%Amount%Amount%
(In thousands)
U.S. federal statutory income tax rate$29,432 21.00 %$30,574 21.00 %$26,193 21.00 %
State and local income taxes, net of federal effect (1)
7,926 5.66 %8,158 5.60 %8,922 7.15 %
Effect of:
Non-taxable and non-deductible items(148)(0.11)%(880)(0.60)%(15)(0.01)%
Tax credits(2)
(1,556)(1.11)%— 0.00 %— 0.00 %
Changes in tax laws or rates(298)(0.21)%— 0.00 %— 0.00 %
Other (3)
(213)(0.15)%141 0.10 %(1,055)(0.85)%
Changes in unrecognized tax benefits565 0.40 %1,162 0.79 %2,707 2.18 %
                Total$35,708 25.48 %$39,155 26.89 %$36,752 29.47 %
(1) State and local taxes in New York State and New York City made up the majority (greater than 50 percent) of the tax effect in this category.
(2) Solar tax credits are presented net of the related proportional amortization and tax benefits.
(3) The individual items included do not individually or in the aggregate exceed the 5% quantitative threshold for separate disaggregation.
The following table discloses income taxes paid (net of refunds) for each annual period presented, disaggregated by domestic federal and state for the years ended December 31, 2025, 2024, and 2023.
Year Ended December 31,
202520242023
AmountAmountAmount
(In thousands)
U.S. federal$8,640 $21,400 $15,788 
U.S state and local
New York State4,226 6,820 1,891 
New York City4,273 2,702 1,857 
California1,330 1,020 643 
All other states1,522 2,055 2,446 
Total$19,991 $33,997 $22,625 
As of December 31, 2025 the Company had remaining state net operating loss carryforwards of approximately $4.2 million which are available to offset future state income and which expires in 2035.
Deferred income tax assets and liabilities result from temporary differences between the carrying value of assets and liabilities for financial reporting purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that are currently in effect and are reported net in the accompanying Consolidated Statement of Financial Condition.
The significant components of the net deferred tax assets and liabilities as of December 31, 2025 and 2024, are as follows:
December 31,
20252024
(In thousands)
Deferred tax assets:
Excess tax basis over carrying value of assets:
Allowance for credit losses
$16,328 $17,436 
Postretirement and other employee benefits4,520 5,069 
Available for sale securities carried at fair value for financial statement purposes8,687 18,043 
Depreciation and amortization103 791 
Operating leases3,274 5,300 
Federal, state and local net operating loss carryforward324 474 
Transfer of available for sale securities to held-to-maturity2,584 3,161 
Other, net766 1,114 
Gross deferred tax asset36,586 51,388 
Deferred tax liabilities:
Derivatives (103)(173)
Equity method investments(1,685)(4,045)
Purchase accounting adjustments, net(240)(395)
Operating leases(2,566)(3,822)
Depreciation and amortization(1,242)(516)
Gross deferred tax liabilities(5,836)(8,951)
Deferred tax asset, net$30,750 $42,437 
As of December 31, 2025, the Company’s deferred tax assets were valued without an allowance as management concluded that it is more likely than not that the entire amount may be realized. ASC 740, Income Taxes, provides for the recognition of deferred tax assets if realization of such assets is more likely than not. Management reassesses the need for a valuation allowance on an annual basis, or more frequently if warranted. If it is later determined that a valuation allowance is required, it generally will be an expense to the income tax provision in the period such determination is made.
The Company and its subsidiaries are subject to income tax in the U.S. and multiple states and local jurisdictions. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination; with a tax examination presumably to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company had an uncertain tax liability related to on-going tax examinations regarding inventory of prior net operating losses of $0.9 million at December 31, 2024. During 2025, the Company settled its uncertain tax liability with respect to the prior net operating losses with the relevant tax authorities. The Company no longer maintains any uncertain tax liability by the end of 2025.
The following table discloses a reconciliation of the beginning and ending amount of unrecognized tax benefit.
202520242023
(In thousands)
Balance at January 1$915 $3,036 $— 
Additions for tax positions of prior years410 1,012 3,036 
Reductions due to lapse of statute of limitations(37)
Settlements(1,325)(3,096)
Balance at December 31$— $915 $3,036 
Of the amounts presented in the table, zero, $0.7 million, and $2.4 million represents the amount of unrecognized tax position that, if recognized, would favorably affect the effective income tax rate in future periods as of December 31, 2025, 2024, and 2023, respectively.
As of December 31, 2025, the Company is generally subject to possible examination by federal, state, and local taxing authorities for 2022 and subsequent tax years. Income tax receivable, which is included in other assets, totaled $9.1 million and $17.9 million as of December 31, 2025 and 2024, respectively.