INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of components of income taxes

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

	Year Ended December 31,
	2022		2021		2020
Current
Federal	$	27,311	$	16,883	$	10,936
State and local		14,162		12,252		7,226
Total current		41,473		29,135		18,162
Deferred
Federal		(1,919)		(405)		139
State and local		(2,081)		285		151
Total deferred		(4,000)		(120)		290
Total income tax expense	$	37,473	$	29,015	$	18,452

Schedule of deferred tax assets and liabilities

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

	At December 31,
	2022		2021
Deferred tax assets:
Allowance for loan losses	$	13,698	$	10,670
Lease liabilities		14,782		—
Net unrealized loss on securities available for sale		27,084		3,731
Off balance sheet reserves		55		55
Restricted stock		1,140		252
Tangible asset		7		10
Non-qualified stock options		285		286
Other		95		—
Total gross deferred tax assets		57,146		15,004
Deferred tax liabilities:
Right of use lease asset		13,551		—
Depreciation and amortization		4,390		3,229
Net unrealized gain on interest rate cap		3,302		334
Prepaid assets		548		459
Other		—		12
Total gross deferred tax liabilities		21,791		4,034
Net deferred tax asset, included in other assets	$	35,355	$	10,970

Schedule of reconciliation of statutory federal income tax rate

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,
	2022				2021				2020
	Tax expense/				Tax expense/				Tax expense/
	(benefit)		Rate		(benefit)		Rate		(benefit)		Rate
Pretax income at statutory rates	$	20,349	21.00	%	$	18,810	21.00	%	$	12,163	21.00	%
State and local taxes, net of federal income tax benefit		9,544	9.85			9,904	11.06			5,828	10.06
Nondeductible expenses		8,175	8.44			680	0.76			457	0.79
Stock options		(302)	(0.31)			—	—			—	—
Excess tax deduction on equity awards		—	—			(467)	(0.52)			(59)	(0.10)
Tax-exempt income, net		(106)	(0.11)			(51)	(0.06)			—	—
Other		(187)	(0.20)			139	0.15			63	0.11
Effective income tax expense/rate	$	37,473	38.67	%	$	29,015	32.39	%	$	18,452	31.86	%