INCOME TAXES

12 Months Ended

Dec. 31, 2023

INCOME TAXES [Abstract]

INCOME TAXES

14. INCOME TAXES

Components of the provision for income taxes were as follows:

	Year Ended December 31,
	2023		2022
Current:
Federal	$	5,825	$	1,864
State		2,185		644
Total		8,010		2,508
Deferred:
Federal		989		767
State		643		527
Total		1,632		1,294
Total provision	$	9,642	$	3,802

Effective Tax rate

The reconciliation of the effective tax rate to the U.S. Statutory Federal Income tax rate was:

	Year Ended December 31,
	2023					2022
Income before taxes	$	35,639				$	16,436
Expected tax	$	7,484		21.0	%	$	3,452		21.0	%
State tax (net of federal benefit)		2,234		6.3	%		925		5.6	%
Other		(76	)	-0.2	%		(575	)	-3.5	%
Total	$	9,642		27.1	%	$	3,802		23.1	%

Deferred Taxes

The components of the non-current deferred tax assets (liabilities) were as follows:

	At December 31,
	2023			2022
Gross noncurrent deferred tax assets (liabilities)
Operating lease liability	$	26,835		$	26,897
Provision for credit losses		14,388			9,454
Finance lease liability		4,390			-
Depreciation		4,180			9,531
Stock-based compensation		1,223			541
Net operating loss carryforwards		1,040			1,957
Accrued expenses		225			67
Other intangibles		24			39
Pension plan liabilities		(202	)		179
Goodwill		(618	)		(1,469	)
Finance lease right of use assets		(4,224	)		-
Operating lease right-of-use assets		(24,043	)		(24,884	)
Noncurrent deferred tax assets, net	$	23,218		$	22,312

As of December 31, 2023, and 2022, the Company had gross net operating losses (“NOL”) of $18.1 million and $34.2 million, respectively for state tax purposes and none for federal. While some states NOL can be carried forward indefinitely, the majority of state NOLs expire in 2033 and end in 2037 if not utilized.