XML 32 R17.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
INCOME TAXES  
INCOME TAXES

NOTE 10 — INCOME TAXES

Income tax expense consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

    

2024

    

2023

    

2022

Current

 

​

  

 

​

  

 

​

  

Federal

​

$

20,729

​

$

21,503

​

$

27,311

State and local

​

 

12,464

​

 

10,947

​

 

14,162

Total current

​

 

33,193

​

 

32,450

​

 

41,473

Deferred

​

 

  

​

 

  

​

 

  

Federal

​

 

(1,479)

​

 

(2,662)

​

 

(1,919)

State and local

​

 

(1,319)

​

 

(138)

​

 

(2,081)

Total deferred

​

 

(2,798)

​

 

(2,800)

​

 

(4,000)

Total income tax expense

​

$

30,395

​

$

29,650

​

$

37,473

​

Deferred tax assets and liabilities consist of the following (in thousands):

​

​

​

​

​

​

​

​

​

At December 31, 

​

    

2024

    

2023

Deferred tax assets:

 

​

  

 

​

  

Allowance for credit losses

​

$

19,208

​

$

17,219

Lease liabilities

​

​

15,555

​

​

13,793

Net unrealized loss on securities available for sale

​

​

23,063

​

​

23,098

Off balance sheet reserves

​

 

382

​

 

351

Restricted stock

​

 

1,822

​

 

1,666

Tangible asset

​

 

—

​

 

3

Other

​

 

136

​

 

147

Total gross deferred tax assets

​

 

60,166

​

 

56,277

Deferred tax liabilities:

​

 

  

​

 

  

Right of use lease asset

​

​

14,269

​

​

12,550

Depreciation and amortization

​

 

3,190

​

 

4,024

Net unrealized gain on interest rate derivatives

​

​

147

​

 

825

Prepaid assets

​

​

1,181

​

 

748

Total gross deferred tax liabilities

​

 

18,787

​

 

18,147

Net deferred tax asset, included in other assets

​

$

41,379

​

$

38,130

​

The following is a reconciliation of the Company’s statutory federal income tax rate to its effective tax rate (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended December 31, 

​

​

2024

​

2023

​

2022

​

​

Tax expense/

​

​

​

​

Tax expense/

​

​

​

​

Tax expense/

​

​

​

​

    

(benefit)

    

Rate

    

​

(benefit)

    

Rate

    

​

(benefit)

    

Rate

    

Pretax income at statutory rates

​

$

20,367

 

21.00

%  

​

$

22,453

 

21.00

%  

​

$

20,349

 

21.00

%  

State and local taxes, net of federal income tax benefit

​

 

8,804

 

9.08

​

​

 

8,539

 

7.99

​

​

 

9,544

 

9.85

​

Nondeductible expenses

​

 

1,780

 

1.84

​

​

 

(940)

 

(0.88)

​

​

 

8,175

 

8.44

​

Equity compensation

​

​

—

​

—

​

​

​

(1,063)

​

(0.99)

​

​

​

(302)

​

(0.31)

​

Tax-exempt income, net

​

 

(103)

 

(0.11)

​

​

 

(104)

 

(0.10)

​

​

 

(106)

 

(0.11)

​

Other

​

 

(453)

 

(0.47)

​

​

 

765

 

0.71

​

​

 

(187)

 

(0.20)

​

Effective income tax expense/rate

​

$

30,395

 

31.34

%  

​

$

29,650

 

27.73

%  

​

$

37,473

 

38.67

%  

​

The Company and the Bank filed consolidated Federal, California, Connecticut, Kentucky, Massachusetts, New Jersey, New York State, New York City, and Tennessee income tax returns in 2024 and 2023. The Bank is subject to Alabama, Florida, and Missouri income taxes on a separate company basis.

As of December 31, 2024 and 2023, there are no unrecognized tax benefits, and the Company does not expect this to significantly change in the next twelve months. Except for California, Kentucky, New Jersey and New York City, the Company is no longer subject to examination by the U.S. federal and state or local tax authorities for years prior to 2021. California, Kentucky, and New Jersey are no longer subject to examination for years prior to 2020. As of December 31, 2024, the Company was under audit in  New York City for the 2019, 2020 and 2021 tax years. Due to the New York City audits, the  2019 tax year New York City statute of limitations has been extended to December 31, 2025.

As of December 31, 2024, the Company had net deferred tax assets of $41.4 million. These deferred tax assets can only be realized if the Company generates taxable income in the future. The Company regularly evaluates the feasibility of the deferred tax asset positions. In determining whether a valuation allowance is necessary, the Company considers the level of taxable income in prior years to the extent that carrybacks are permitted under current tax laws, as well as estimates of future pre-tax and taxable income and tax planning strategies that would, if necessary, be implemented. The Company expects to realize the deferred tax assets over the allowable carryback and/or carryforward periods. Therefore, no valuation allowance was deemed necessary against the deferred tax assets as of December 31, 2024. However, if an unanticipated event occurred that materially changed pre-tax and taxable income in future periods, a valuation allowance may become necessary and could have a material effect on our consolidated financial statements.