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INCOME TAXES | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | 11. INCOME TAXES The income tax expense included in the consolidated financial statements for the years ended December 31 is allocated as follows:
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Federal: |  |  |  |  |  |  |  |  |
Current expense |  | $ | 19,576 |  |  | $ | 25,814 |  |  | $ | 27,228 |
Deferred (benefit)/expense |  |  | (11,461 | ) |  |  | (11,862 | ) |  |  | (7,817 | )
State: |  |  |  |  |  |  |  |  |
Current expense |  |  | 6,685 |  |  |  | 7,889 |  |  |  | 7,511 |
Deferred (benefit)/expense |  |  | (4,384 | ) |  |  | (3,414 | ) |  |  | 1,176 |
Change in valuation allowance |  |  | 1,548 |  |  |  |  |  |  |
Total income tax expense |  | $ | 11,964 |  |  | $ | 18,427 |  |  | $ | 28,098 |
Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21 percent for 2024, 2023, and 2022, respectively, to income before taxes as a result of the following:
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
"Tax expense computed at applicable statutory rate" |  | $ | 9,440 |  |  | $ | 14,129 |  |  | $ | 21,513 |
(Decrease)/increase in taxes resulting from: |  |  |  |  |  |  |  |  |
Tax-exempt income |  |  | (174 | ) |  |  | (261 | ) |  |  | (236 | )
State income taxes, net of Federal benefit |  |  | 1,818 |  |  |  | 3,535 |  |  |  | 7,109 |
Bank owned life insurance income |  |  | (327 | ) |  |  | (266 | ) |  |  | (261 | )
Life insurance expense |  |  | 163 |  |  |  | 238 |  |  |  | 21 |
Interest disallowance |  |  | 100 |  |  |  | 143 |  |  |  | 34 |
Meals and entertainment expense |  |  | 106 |  |  |  | 78 |  |  |  | 39 |
Stock-based compensation |  |  | 127 |  |  |  | 889 |  |  |  | (130 | )
Change in valuation allowance |  |  | 1,548 |  |  |  | — |  |  |  | — |
Other |  |  | (837 | ) |  |  | (58 | ) |  |  | 9 |
Total income tax expense |  | $ | 11,964 |  |  | $ | 18,427 |  |  | $ | 28,098 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows:
(In thousands) |  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Allowance for credit losses |  | $ | 19,430 |  |  | $ | 17,540 |
Tax net operating loss carryforward |  |  | 134 |  |  |  | 262 |
Capital loss carryforward |  |  | 1,548 |  |  |  | 1,763 |
Organization costs |  |  | 3 |  |  |  | 7 |
Unrealized loss on securities available for sale |  |  | 27,182 |  |  |  | 25,408 |
Unrealized loss on equity security |  |  | 558 |  |  |  | 488 |
Stock compensation expense |  |  | 6,081 |  |  |  | 2,621 |
Nonaccrual interest |  |  | 31 |  |  |  | 115 |
Accrued compensation |  |  | 7,923 |  |  |  | 7,201 |
Accrued expenses |  |  | 833 |  |  |  | 1,079 |
Discount accretion |  |  | 1,441 |  |  |  |
Lease liabilities |  |  | 11,486 |  |  |  | 3,328 |
Finance lease |  |  | 516 |  |  |  | 672 |
Other |  |  | 1,170 |  |  |  | 1,080 |
Total deferred tax assets |  | $ | 78,336 |  |  | $ | 61,564 |
Deferred tax liabilities: |  |  |  |  |  |
Lease financing |  | $ | 38,343 |  |  | $ | 48,002 |
Cash flow hedge |  |  | 2,078 |  |  |  | 1,883 |
Deferred loan origination costs and fees |  |  | 2,090 |  |  |  | 1,878 |
Deferred income |  |  | 4,420 |  |  |  | 4,479 |
Amortization of intangible assets |  |  | 2,451 |  |  |  | 1,245 |
Lease right-of-use asset |  |  | 10,619 |  |  |  | 3,126 |
Other |  |  | 406 |  |  |  | 446 |
Total deferred tax liabilities |  |  | 60,407 |  |  |  | 61,059 |
Net deferred tax asset/(liability) before valuation allowance |  |  | 17,929 |  |  |  | 505 |
Valuation allowance |  |  | (1,548 | ) |  |  | — |
Net deferred tax asset/(liability) |  | $ | 16,381 |  |  | $ | 505 |
Management believes that not all existing net deductible temporary differences that comprise the net deferred tax asset will reverse during periods in which the Company generates sufficient taxable income of appropriate character. Accordingly, management has established a valuation allowance on all of the Company’s capital loss carryforward. Based on all available evidence, Management believes it is more likely than not the Company will realize the remaining deferred tax assets. Significant changes in the Company's operations and or economic conditions could affect the benefits of the recognized net deferred tax assets. At December 31, 2024, the Company had $2.5 million of state net operating loss ("NOL") carryforward available to offset future taxable income. These operating loss carryforwards have various expirations beginning in 2033. On June 28 2024, the governor of New Jersey signed into law a new Corporate Transit Fee, which increases the NJ corporate tax rate from 9% to 11.5%. This fee will be imposed on businesses that have New Jersey taxable income of $10 million or more for tax years beginning January 1, 2024 through December 31, 2028. The Bank made an adjustment to income tax expense and deferred tax assets/liabilities to reflect the new state tax rate. The Company is subject to U.S. Federal income tax as well as income tax of various state jurisdictions. The Company is no longer subject to federal examination for tax years prior to 2021 or by state and local tax authorities for years prior to 2019.

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