INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Schedule of components of income taxes

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

	Year Ended December 31,
	2023		2022		2021
Current
Federal	$	21,503	$	27,311	$	16,883
State and local		10,947		14,162		12,252
Total current		32,450		41,473		29,135
Deferred
Federal		(2,662)		(1,919)		(405)
State and local		(138)		(2,081)		285
Total deferred		(2,800)		(4,000)		(120)
Total income tax expense	$	29,650	$	37,473	$	29,015

Schedule of deferred tax assets and liabilities

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

	At December 31,
	2023		2022
Deferred tax assets:
Allowance for credit losses	$	17,219	$	13,698
Lease liabilities		13,793		14,782
Net unrealized loss on securities available for sale		23,098		27,084
Off balance sheet reserves		351		55
Restricted stock		1,666		1,140
Tangible asset		3		7
Non-qualified stock options		—		285
Other		147		95
Total gross deferred tax assets		56,277		57,146
Deferred tax liabilities:
Right of use lease asset		12,550		13,551
Depreciation and amortization		4,024		4,390
Net unrealized gain on interest rate derivatives		825		3,302
Prepaid assets		748		548
Other		—		—
Total gross deferred tax liabilities		18,147		21,791
Net deferred tax asset, included in other assets	$	38,130	$	35,355

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,
	2023				2022				2021
	Tax expense/				Tax expense/				Tax expense/
	(benefit)		Rate		(benefit)		Rate		(benefit)		Rate
Pretax income at statutory rates	$	22,453	21.00	%	$	20,349	21.00	%	$	18,810	21.00	%
State and local taxes, net of federal income tax benefit		8,539	7.99			9,544	9.85			9,904	11.06
Nondeductible expenses		(940)	(0.88)			8,175	8.44			680	0.76
Equity compensation		(1,063)	(0.99)			(302)	(0.31)			(467)	(0.52)
Tax-exempt income, net		(104)	(0.10)			(106)	(0.11)			(51)	(0.06)
Other		765	0.71			(187)	(0.20)			139	0.15
Effective income tax expense/rate	$	29,650	27.73	%	$	37,473	38.67	%	$	29,015	32.39	%