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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | (19.) INCOME TAXES The income tax expense for the years ended December 31 consisted of the following (in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current tax expense: |  |  |  |  |  |  |  |  |
Federal |  | $ | 15,371 |  |  | $ | 11,453 |  |  | $ | 10,041 |
State |  |  | 3,408 |  |  |  | 2,854 |  |  |  | 1,873 |
Total current tax expense |  |  | 18,779 |  |  |  | 14,307 |  |  |  | 11,914 |
Deferred tax (benefit) expense: |  |  |  |  |  |  |  |  |
Federal |  |  | (3,250 | ) |  |  | 4,384 |  |  |  | (3,306 | )
State |  |  | (1,132 | ) |  |  | 834 |  |  |  | (1,217 | )
Total deferred tax (benefit) expense |  |  | (4,382 | ) |  |  | 5,218 |  |  |  | (4,523 | )
Total income tax expense |  | $ | 14,397 |  |  | $ | 19,525 |  |  | $ | 7,391 |
Income tax expense differed from the statutory federal income tax rate for the years ended December 31 as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory federal tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |
Tax exempt interest income |  |  | (0.9 | ) |  |  | (0.7 | ) |  |  | (2.0 | )
Tax credits and adjustments |  |  | (2.6 | ) |  |  | (2.6 | ) |  |  | (3.4 | )
Non-taxable earnings on company owned life insurance |  |  | - |  |  |  | (0.6 | ) |  |  | (0.9 | )
State taxes, net of federal tax benefit |  |  | 2.5 |  |  |  | 3.0 |  |  |  | 1.1 |
Nondeductible expenses |  |  | 0.2 |  |  |  | - |  |  |  | 0.1 |
Other, net |  |  | 0.1 |  |  |  | - |  |  |  | 0.3 |
Effective tax rate |  |  | 20.3 | % |  |  | 20.1 | % |  |  | 16.2 | %
1 Total income tax expense (benefit) was as follows for the years ended December 31 (in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Income tax expense |  | $ | 14,397 |  |  | $ | 19,525 |  |  | $ | 7,391 |
Shareholder’s equity |  |  | (42,812 | ) |  |  | (5,282 | ) |  |  | 5,732 |
The Company recognizes deferred income taxes for the estimated future tax effects of differences between the tax and financial statement bases of assets and liabilities considering enacted tax laws. These differences result in deferred tax assets and liabilities, which are included in other assets in the Company’s consolidated statements of financial condition. The Company also assesses the likelihood that deferred tax assets will be realizable based on, among other considerations, future taxable income and establishes, if necessary, a valuation allowance for those deferred tax assets determined to not likely be realizable. A deferred tax asset valuation allowance is recognized if, based on the weight of available evidence (both positive and negative), it is more likely than not that some portion or all of the deferred tax assets will not be realized. The future realization of deferred tax benefits depends upon the existence of sufficient taxable income within the carry-back and carry-forward periods. Management’s judgment is required in determining the appropriate recognition of deferred tax assets and liabilities, including projections of future taxable income. In 2022 and 2021, the Company recognized the impact of its investments in limited partnerships that generated qualifying tax credits resulting i n a $2.6 m illion reduction in income tax expense in each year, and an $815 thousand and $431 thousand net loss recorded in noninterest income, respectively. See Note 1 for the Company’s accounting policy for income taxes and these tax credit investments. (19.) INCOME TAXES (Continued) The Company’s net deferred tax asset is included in other assets in the consolidated statements of financial condition. The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows at December 31 (in thousands):
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Allowance for credit losses |  | $ | 12,695 |  |  | $ | 10,627 |
Leases – right of use obligations |  |  | 8,505 |  |  |  | 5,993 |
Deferred compensation |  |  | 1,615 |  |  |  | 1,365 |
Investment in limited partnerships |  |  | 1,381 |  |  |  | - |
SERP agreements |  |  | 179 |  |  |  | 262 |
Share-based compensation |  |  | 975 |  |  |  | 759 |
Tax attribute carryforward benefits |  |  | - |  |  |  | 446 |
Net unrealized loss on securities available for sale |  |  | 44,312 |  |  |  | 1,712 |
Accrued pension costs |  |  | 229 |  |  |  | - |
Other |  |  | 1,206 |  |  |  | 579 |
Gross deferred tax assets |  |  | 71,097 |  |  |  | 21,743 |
Deferred tax liabilities: |  |  |  |  |  |
Leases – right of use assets |  |  | 7,964 |  |  |  | 5,533 |
Investments in limited partnerships |  |  | - |  |  |  | 126 |
Prepaid expenses |  |  | 637 |  |  |  | 662 |
Prepaid pension costs |  |  | - |  |  |  | 1,677 |
Intangible assets |  |  | 2,580 |  |  |  | 2,418 |
Depreciation and amortization |  |  | 4,080 |  |  |  | 3,471 |
Net unrealized gain on securities available for sale |  |  | - |  |  |  | - |
Loan servicing assets |  |  | 377 |  |  |  | 389 |
Deferred loan origination costs |  |  | 401 |  |  |  | 830 |
Other |  |  | 1,631 |  |  |  | 403 |
Gross deferred tax liabilities |  |  | 17,670 |  |  |  | 15,509 |
Net deferred tax asset |  | $ | 53,427 |  |  | $ | 6,234 |
Based upon the Company’s historical and projected future levels of pre-tax and taxable income, the scheduled reversals of taxable temporary differences to offset future deductible amounts, and prudent and feasible tax planning strategies, management believes it is more likely than not that the deferred tax assets will be realized. Therefore, no valuation allowance has been recorded as of December 31, 2022 and 2021. The Company and its subsidiaries are primarily subject to federal and New York income taxes. The federal income tax years currently open for audit are 2019 through 2022. The New York income tax years currently open for audit are 2020 through 2022. At December 31, 2022, the Company had no federal or New York net operating loss, capital loss or tax credit carryforwards. The Company had a capital loss carryforward totaling $1.7 million that was generated in the 2020 tax year and a portion of the capital loss was carried back to prior years and the remainder, utilized in 2021. The Company’s unrecognized tax benefits and changes in unrecognized tax benefits were not significant as of or for the years ended December 31, 2022, 2021 and 2020. There were no material i nterest or penalties recorded in the income statement in income tax expense for the years ended December 31, 2022, 2021 and 2020. As of December 31, 2022 and 2021, there were no amounts accrued for interest or penalties related to uncertain tax positions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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