Quarterly report [Sections 13 or 15(d)]

Income Taxes

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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 5 — Income Taxes

The Company’s income tax expense was $6.1 million and $6.0 million, representing an effective income tax rate of 28.8% and 29.3% for the three months ended June 30, 2025 and 2024, respectively. The Company's income tax expense was $13.6 million and $12.5 million, representing an effective income tax rate of 29.3% and 29.7%, for the six months ended June 30, 2025 and 2024, respectively.

Management concluded that as of June 30, 2025 and December 31, 2024, a valuation allowance of $1.5 million was appropriate against certain state net operating loss carry forwards. For all other deferred tax assets, management believes it was more likely than not these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. Net deferred tax assets were $36.8 million and $38.2 million as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025, the Company was subject to examination for its federal tax returns for years ending after December 31, 2020 and for state tax returns for the periods ended after December 31, 2019. As of June 30, 2025, the Company is under audit with the State of New York for tax years 2021 and 2022. During the quarter ended June 30, 2025, there was no material change to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months.