Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The Company reviews its deferred tax assets regularly for recoverability. As of June 30, 2023, we determined that we did not need a valuation allowance on our gross deferred tax asset. Although realization of the deferred tax assets is not assured, management believes that it is more likely than not the deferred tax assets will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes.

For the three and six months ended June 30, 2023, there was no current reporting period activity recorded in the operating statement or the balance sheet related to uncertain tax positions.

The effective tax rate for the three months ended June 30, 2023 was 23.9% compared to 31.0% for the same period last year. The effective tax rate for the six months ended June 30, 2023 was 25.0% compared to 24.9% for the same period last year. The provision for income taxes differed from the statutory rate as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Expected provision at federal statutory tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Increases (decrease) resulting from:
State income tax, net of federal tax benefit	2.4	%	2.4	%	2.4	%	3.2	%
Disallowed compensation	0.6	%	6.7	%	1.7	%	3.1	%
Effect of rate change	—	%	—	%	—	%	(2.6)	%
Nondeductible expenses	0.3	%	0.7	%	0.3	%	0.3	%
Dividend received deduction	(0.2)	%	(0.7)	%	(0.3)	%	(0.4)	%
Other, net	(0.2)	%	0.9	%	(0.1)	%	0.3	%
Total income tax expense (benefit)	23.9	%	31.0	%	25.0	%	24.9	%