Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 -- Income Taxes

A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. As of December 31, 2023, management concluded, based on the evaluation of the positive and negative evidence, that is more likely than not that the deferred tax assets will be realized and therefore no valuation allowance on the Company’s deferred tax assets is required. The Company evaluates the realizability of its deferred tax assets each quarter, and as of June 30, 2024, based on all of the available evidence, management concluded that it is more likely than not that the deferred tax assets will be realized.

During the three months ended June 30, 2024 and 2023, the Company recorded income tax expenses of $18,927 and $5,384, respectively, resulting in effective tax rates of 24.9% and 26.6%, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to the recognition of tax benefits related to restricted stock that vested in February and May 2024.

During the six months ended June 30, 2024 and 2023, the Company recorded approximately $39,401 and $10,727, respectively, resulting in effective tax rates of 25.7% and 24.7%, respectively. The increase in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to a lower prior year effective tax rate resulting from the release of the valuation allowance during 2023. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain non-deductible and tax-exempt items.