ALNC » Topics » Income taxes

This excerpt taken from the ALNC 10-K filed Mar 12, 2010.

Income Taxes

Provision for income taxes is based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amount in the financial statements. Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

The Company adopted the guidance issued by the FASB with respect to accounting for uncertainty in income taxes as of January 1, 2007. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no affect on the Company’s financial statements. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes.

This excerpt taken from the ALNC 10-Q filed May 11, 2009.

Income Taxes

The Company’s effective tax rate was 17.6% for the first quarter, compared with 25.6% in the year-ago period. The decrease in the effective tax rate is due to an increase in tax exempt income as a percentage of total taxable income.

These excerpts taken from the ALNC 10-K filed Mar 13, 2009.

Income Taxes

Provision for income taxes is based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amount in the financial statements. Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

The Company adopted FASB Interpretation 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), as of January 1, 2007. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no affect on the Company’s financial statements. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes.

Income Taxes

ALIGN="justify">Provision for income taxes is based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported
amount in the financial statements. Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be
realized or settled.

The Company adopted FASB Interpretation 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), as
of January 1, 2007. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is
the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no affect on the Company’s
financial statements. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes.

FACE="Times New Roman" SIZE="2">Dividend Restriction

Banking regulations require maintaining certain capital levels and may limit
the dividends paid by the Bank to the holding company or by the holding company to shareholders. The Company received capital in the form of preferred stock from the U.S. Treasury Department under the Capital Purchase Program. Until the earlier of
December 19, 2011 and the date the Treasury no longer holds any preferred stock, without U.S. Treasury’s consent, the Company is restricted from increasing the quarterly common dividend above $0.26 per share.

STYLE="margin-top:12px;margin-bottom:0px">Fair Value of Financial Instruments

Fair values of
financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit
risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

STYLE="margin-top:12px;margin-bottom:0px">Segment Reporting

The Company’s operations are
solely in the financial services industry and include providing to its customers traditional banking, equipment leasing and other financial services including investment management services. The Company operates primarily in the geographical regions
of Cortland, Madison, Oneida, Onondaga, and Oswego counties of New York State, and from a Trust Administration Center in Buffalo, NY. In addition, Alliance Leasing conducts business in over thirty states. While the Company’s chief
decision-makers monitor the revenue streams of the various Company products and services, the segments that could be separated from the Company’s primary business of banking do not meet the criteria for separate disclosure. Accordingly, all of
the Company’s financial service operations are considered by management to be combined in one reportable operating segment.

This excerpt taken from the ALNC 10-Q filed Nov 10, 2008.

Income Taxes

The Company’s effective tax rate was 24.1% and 24.9%, respectively, for the quarter and nine months ended September 30, 2008, compared with 23.4% for both the quarter and nine months in the year-ago periods. The increase in the effective tax rate in 2008 primarily reflects a decline in the percentage of non-taxable income to pre-tax income.

 

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Table of Contents
This excerpt taken from the ALNC 10-Q filed Aug 11, 2008.

Income Taxes

The Company’s effective tax rate was 25.1% and 25.3%, respectively, for the quarter and six months ended June 30, 2008, compared with 22.8% and 23.4%, respectively, in the year-ago periods. The increase in the effective tax rate in 2008 primarily reflects a decline in the percentage of non-taxable income to pre-tax income.

 

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Table of Contents
This excerpt taken from the ALNC 10-Q filed May 9, 2008.

Income taxes

The Company’s effective tax rate was 25.6% for the first quarter, compared with 24.0% in the year-ago period. The increase in the effective tax rate primarily reflects a decrease in the percentage of non-taxable income to pre-tax income.

This excerpt taken from the ALNC 10-K filed Mar 17, 2008.

Income Taxes

Provision for income taxes is based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amount in the financial statements. Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

The Company adopted FASB Interpretation 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), as of January 1, 2007. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no affect on the Company’s financial statements. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes.

This excerpt taken from the ALNC 10-Q filed Nov 9, 2007.

Income Taxes

The Company’s effective tax rate was 23.4% for both the three months and nine months ended September 30, 2007, compared with 24.0% and 21.7% in the year-ago periods.

ANALYSIS OF FINANCIAL CONDITION

This excerpt taken from the ALNC 10-Q filed Aug 6, 2007.

Income Taxes

The Company’s effective tax rate was 22.8% and 23.4% for the three months and six months ended June 30, 2007, compared with 22.4% and 20.4% in the year-ago periods. The higher effective tax rates in the current year periods was attributable to a decrease in tax-exempt income as a percentage of total income due primarily to the acquisition of Bridge Street. The differences from the statutory rate is driven substantially by tax-exempt income.

This excerpt taken from the ALNC 10-Q filed May 9, 2007.

Income taxes

The Company’s effective tax rate was 24.0% for the three months ended March 31, 2007, compared with 17.4% in the year-ago period. The higher tax rate is primarily the result of tax-exempt income representing a lower proportion of our total income as a result of the Bridge Street acquisition.

This excerpt taken from the ALNC 10-K filed Mar 15, 2007.

Income Taxes

Provision for income taxes is based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amount in the financial statements. Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

36



 

Alliance Financial Corporation and Subsidiaries
Notes to Consolidated Financial Statements


This excerpt taken from the ALNC 10-Q filed Nov 8, 2006.

Income taxes

The Company’s effective tax rate was 21.7% for the nine months ended September 30, 2006, below the rate of 24.0% reported for the nine months ended September 30, 2005. The lower tax rate in the current year period was attributable to an increase in tax-exempt income as a percentage of total income. The difference from the statutory rate is driven substantially by tax-exempt income.

This excerpt taken from the ALNC 10-Q filed Aug 9, 2006.

Income taxes

The Company’s effective tax rate was 20.4% for the six months ended June 30, 2006, below the rate of 24.1% reported for the six months ended June 30, 2005. The lower tax rate in the current year period was attributable to an increase in tax-exempt income as a percentage of total income. The difference from the statutory rate is driven substantially by tax-exempt income.

This excerpt taken from the ALNC 10-K filed Mar 14, 2006.

Income Taxes:

          Provision for income taxes is based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amount in the financial statements. Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

This excerpt taken from the ALNC 10-Q filed Nov 3, 2005.

Income taxes

 

The Company’s effective tax rate was 23.7% for the three months ended September 30, 2005, comparable with a rate of 23.3% reported in the prior quarter, but up compared to the 19.6% rate reported for the three months ended September 30, 2004. The lower tax rate in the prior year period included the effect of a one time adjustment in tax expense. The difference from the statutory rate is driven substantially by tax-exempt income.

 

 

This excerpt taken from the ALNC 10-Q filed Aug 4, 2005.

Income taxes

The Company’s effective tax rate was 23.3% for the three months ended June 30, 2005, slightly below the 24.9% rate reported for the three months ended June 30, 2004. The lower tax rate was attributable to an increase in tax-exempt income as a percentage of total income in the current quarter compared to the 2004 second quarter.


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ANALYSIS OF FINANCIAL CONDITION

Total assets increased $42,746,000, or 4.8%, from $893,934,000 at December 31, 2004 to $936,680,000 at June 30, 2005. For the six months ended June 30, 2005, total loans and leases (net of unearned income) increased $58,700,000, or 11.3%, to $579,432,000. Loan growth was greatest during the first half of 2005 in the indirect auto lending and commercial leasing. Since December 31, 2004, indirect auto loans increased 25.3%, with much of the growth coming from expansion of the market area into western New York State. A 192.4% increase in commercial leases over the last six months reflected successes of a new management team in the leasing company. The commercial loan portfolio grew 1.8% during the period, consumer loans were up 2.1%, and residential mortgage loans declined 0.6%. The decline in the residential mortgage loan portfolio reflected an increase in the number and amount of mortgage loans sold to the secondary market. During the first six months of 2005, the Bank sold $6,586,000 of newly originated mortgage loans increasing the balance of loans that it was servicing by $3,680,000 to $50,336,000.

The following table sets forth the composition of the Bank’s gross loan and lease portfolio at the dates indicated:

 
This excerpt taken from the ALNC 10-Q filed May 5, 2005.

Income taxes

The Company’s effective tax rate was 24.9% for the three months ended March 31, 2005, comparable with the 25% rate reported for the three months ended March 31, 2004.

ANALYSIS OF FINANCIAL CONDITION

Total assets increased $15,226,000, or 1.7%, from $893,934,000 at December 31, 2004 to $909,160,000 at March 31, 2005. For the three months ended March 3, 2005, total loans and leases increased $13,361,000, or 2.6%, to $536,149,000. Growth occurred during the first quarter of 2005 in the indirect auto, commercial loan, and lease portfolios. Since December 31, 2004, indirect auto loans increased 8.1%, with much of the growth coming from expansion of the market area into western New York State. A 28.7% increase in commercial lease outstandings over the last three months reflected successes of a new management team in the leasing company. Declines in the real estate and consumer loan categories reflect first quarter seasonal weakness.

The following table sets forth the composition of the Bank’s loan and lease portfolio at the dates indicated:

 
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