Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended June 30, 2024 and 2023, the Company's income tax expense was $2,841,000 and $3,323,000, respectively, with an effective tax rate of 23.5% and 23.7%, respectively. For the six months ended June 30, 2024 and 2023, the Company's income tax expense was $4,816,000 and $6,141,000, respectively, with an effective tax rate of 23.5% and 23.6%, respectively. For both the three and six months ended June 30, 2024 and 2023, the Company's effective tax rate differed from the United States federal statutory rate of 21% primarily due to state taxes.

In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. Based upon the level of historical taxable income, at this time, the Company determined that sufficient positive evidence existed to conclude that it is more likely than not there will be full utilization of the deferred tax assets in each jurisdiction. As such, as of June 30, 2024, the Company did not record any valuation allowance.

The Company remains subject to the Internal Revenue Services ("IRS") examination for the 2020 through 2022 tax years, and has received notice in February 2019 that it is under examination for years 2016 and 2017. Additionally, the Company files multiple state and local income tax returns and remains subject to examination in various of these jurisdictions for the 2019 through 2022 tax years. As of June 30, 2024, and December 31, 2023, the Company did not have any unrecognized tax benefit.