Income taxes

6 Months Ended

Jun. 30, 2025

Income taxes

Income taxes

8. Income taxes

Income tax expense of $385,000 was recorded for the three months ended June 30, 2025 compared to $955,000 for the three months ended June 30, 2024. The effective tax rate was approximately 25.4% for the three months ended June 30, 2025 compared to 27.6% for the three months ended June 30, 2024. An income tax benefit of $200,000 was recorded for the six months ended June 30, 2025 compared to income tax expense of $375,000 for the six months ended June 30, 2024. The effective tax rate was approximately 30.9% for the six months ended June 30, 2025 compared to 28.9% for the six months ended June 30, 2024. Income tax provisions for interim (quarterly) periods are based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period.

On July 4, 2025, new tax law was signed, providing permanent extension for several business tax provisions originally enacted under the Tax Law and Jobs Act. The Company does not anticipate the change in tax law to have a material impact on its financial statements. The Company will continue to monitor federal and state-level guidance, including state conformity to these federal tax changes, as further legislative and administrative updates become available.