FLUSHING FINANCIAL CORP Income Taxes Disclosure
10. Income Taxes
The Company and its subsidiaries are subject to income tax within U.S. federal, New York, New York City, and various other state and local jurisdictions. The Company is undergoing an examination of New York City income tax returns for years ending December 31, 2015 through 2017. The New York State examination of tax years 2015 through 2016 was closed in 2022 and the examination of tax years 2017 through 2019 was closed in September 2024 with no changes. The Company remains subject to examination for its federal and various other states income tax returns for the years ending on or after December 31, 2021.
As of December 31, 2024, the Company had net operating loss carry forwards for federal, New York, New York City, and various other states where tax returns are filed. The gross federal net operating loss carry forward is $42.9 million and has no expiration. The post-apportioned gross New York net operating loss carryforward is $34.8 million and will expire in 2044. The post-apportioned gross New York City net operating loss carryforward is $57.2 million and will begin to expire in 2037. The post-apportioned gross net operating loss carry forwards for all other states where tax returns are filed is $2.8 million and either have no expiration or various expiration dates based on specific jurisdictional laws.
Income tax provisions are summarized as follows for the years ended December 31:
| 2024 |
| 2023 |
| 2022 | ||||
(In thousands) | |||||||||
Federal: |
|
|
|
|
|
| |||
Current | $ | (2,092) | $ | 4,904 | $ | 17,565 | |||
Deferred |
| (8,387) |
| 2,681 |
| 4 | |||
Total federal tax provision (benefit) |
| (10,479) |
| 7,585 |
| 17,569 | |||
State and Local: |
|
|
|
|
|
| |||
Current |
| 1,020 |
| 2,544 |
| 10,198 | |||
Deferred |
| (7,475) |
| 1,040 |
| 140 | |||
Total state and local tax provision (benefit) |
| (6,455) |
| 3,584 |
| 10,338 | |||
Total provision for income taxes | $ | (16,934) | $ | 11,169 | $ | 27,907 | |||
The income tax provision in the Consolidated Statements of Operations has been provided at effective rates of 35.1%, 28.0%, and 26.6% for the years ended December 31, 2024, 2023, and 2022, respectively. The effective rates differ from the statutory federal income tax rate as follows for the years ended December 31:
| 2024 |
| 2023 |
| 2022 |
| ||||||||||
(Dollars in thousands) |
| |||||||||||||||
Taxes at federal statutory rate | $ | (10,136) |
| 21.0 | % | $ | 8,365 |
| 21.0 | % | $ | 22,019 |
| 21.0 | % | |
Increase (reduction) in taxes resulting from: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
State and local income tax, net of Federal income tax benefit |
| (5,099) |
| 10.6 |
| 2,831 |
| 7.1 |
| 8,167 |
| 7.8 | ||||
Tax exempt income, net |
| (1,258) |
| 2.6 |
| (1,079) |
| (2.7) |
| (2,083) |
| (2.0) | ||||
Other |
| (441) |
| 0.9 |
| 1,052 |
| 2.6 |
| (196) |
| (0.2) | ||||
Taxes at effective rate | $ | (16,934) |
| 35.1 | % | $ | 11,169 |
| 28.0 | % | $ | 27,907 |
| 26.6 | % | |
The components of the net deferred tax assets are as follows at December 31:
| 2024 |
| 2023 | |||
(In thousands) | ||||||
Deferred tax assets: | ||||||
Allowance for credit losses on loans | $ | 12,400 | $ | 12,475 | ||
Net unrealized losses on securities available for sale* |
| 1,935 |
| 24,667 | ||
Operating lease liabilities | 14,343 | 12,680 | ||||
Accrued compensation |
| 10,599 |
| 7,882 | ||
Stock based compensation |
| 2,181 |
| 3,140 | ||
Depreciation |
| 3,553 |
| 2,711 | ||
Derivative adjustments |
| 426 |
| 445 | ||
Pension and post-retirement benefits |
| 1,941 |
| 2,044 | ||
Other allowances |
| 2,619 |
| 3,609 | ||
Acquisition fair value marks | 535 | 637 | ||||
Net operating losses | 15,218 | 491 | ||||
Net unrealized losses on pension and post-retirement benefits* | 379 | 172 | ||||
Other |
| 1,000 |
| 1,482 | ||
Deferred tax assets | 67,129 | 72,435 | ||||
Deferred tax liabilities: | ||||||
Right of use assets | 14,144 | 12,287 | ||||
Net unrealized gains on cash flow hedges* |
| 4,793 |
| 6,667 | ||
Deferred loan fees, net | 3,933 | 3,819 | ||||
Fair value adjustments |
| 2,748 |
| 3,110 | ||
Net unrealized gains on entity specific fair value* |
| 698 |
| 747 | ||
Other | 408 | 660 | ||||
Deferred tax liabilities | 26,724 | 27,290 | ||||
Net deferred tax asset included in other assets | $ | 40,405 | $ | 45,145 | ||
*Represents the amount of deferred taxes recorded in accumulated other comprehensive loss.
At December 31, 2024, after considering all available positive and negative evidence, management concluded that a valuation allowance against deferred tax assets was not necessary because it is more likely than not that these tax benefits will be fully realized in future periods. While management continues to evaluate the need for a valuation allowance prospectively, it is not expected that a valuation allowance will be required based upon projected profitability.
At December 31, 2024 and 2023, the Company had no material unrecognized tax benefits or accrued interest and penalties recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months.
Want the next FLUSHING FINANCIAL CORP income taxes disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment FLUSHING FINANCIAL CORP's next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 11, 2025 | Showing above |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 15, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.