INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Taxes

The components of the Company’s provision for income taxes for the years ended December 31, 2023, 2022, and 2021 were, as follows: 

(In thousands)	2023		2022		2021
Current:
Federal tax expense	$	5,596	$	17,915	$	17,340
State tax expense	7,497		6,831		7,580
Total current tax expense (1)	13,093		24,746		24,920
Deferred:
Federal tax (benefit)/expense	(2,658)		(2,274)		5,125
State tax (benefit)/expense	(1,711)		(1,187)		112
Total deferred tax (benefit)/expense	(4,369)		(3,461)		5,237
Change in valuation allowance	—		—		200
Income tax expense	$	8,724	$	21,285	$	30,357

(1)    The Company recorded an additional $500 thousand benefit in 2021 resulting from the carryback of its 2020 NOL to recover federal income taxes paid in 2015 through 2018 (at a 35% federal income tax rate for years 2015 through 2017).

Schedule of Reconciliation of the Statutory Federal Income Tax Rate to Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2023, 2022, and 2021: 

	2023				2022				2021
(In thousands, except rates)	Amount		Rate		Amount		Rate		Amount		Rate
Statutory tax rate	$	16,448	21.0	%	$	23,902	21.0	%	$	31,294	21.0	%
Increase (decrease) resulting from:
State taxes, net of federal tax benefit	4,570		5.8		4,459		3.9		6,077		4.1
Tax exempt income - investments, net	(3,611)		(4.6)		(3,515)		(3.1)		(3,475)		(2.3)
Bank-owned life insurance	(1,568)		(2.0)		(1,258)		(1.1)		(1,348)		(0.9)
Tax credits, net of basis reduction	(7,804)		(10.0)		(2,129)		(1.9)		(2,881)		(1.9)
Change in valuation allowance	—		—		—		—		200		0.1
Tax rate benefit on net operating loss carryback	—		—		—		—		(493)		(0.3)
Other, net	689		0.9		(174)		(0.1)		983		0.6
Effective tax rate	$	8,724	11.1	%	$	21,285	18.7	%	$	30,357	20.4	%

Schedule of Components of Deferred Tax Assets and Liabilities

As of December 31, 2023 and 2022, significant components of the Company’s deferred tax assets and liabilities were, as follows:

(In thousands)	2023		2022
Deferred tax assets:
Allowance for credit losses	$	31,181	$	28,312
Unrealized capital loss on tax credit investments	2,688		1,603
Net unrealized loss on securities available for sale, swaps, and pension in OCI	50,704		63,335
Employee benefit plans	12,102		11,659
Purchase accounting adjustments	4,587		4,342
Net operating loss carryforwards	202		503
Deferred loan fees	5,654		4,049
Lease liability	13,583		14,148
Premises and equipment	1,188		2,630
Nonaccrual interest	890		1,069
Intangible amortization	1,020		659
Other	2,337		1,778
Deferred tax assets, net before valuation allowances	126,136		134,087
Valuation allowance	(400)		(400)
Deferred tax assets, net of valuation allowances	$	125,736	$	133,687
Deferred tax liabilities:
Loan servicing rights	$	(1,133)	$	(1,212)
Unamortized tax credit reserve	(1,661)		(1,687)
Right-of-use asset	(12,874)		(12,457)
Deferred tax liabilities	$	(15,668)	$	(15,356)
Deferred tax assets, net	$	110,068	$	118,331

Schedule of Components of the Valuation Allowance on Deferred Tax Asset

The components of the Company’s valuation allowance on its deferred tax asset, net as of December 31, 2023 and 2022 were, as follows: 

(in thousands)	2023		2022
State valuation allowances	$	(400)	$	(400)

Schedule of Changes in Unrecognized Tax Benefits

The following table presents changes in unrecognized tax benefits for the years ended December 31, 2023, 2022, and 2021:

(In thousands)	2023		2022		2021
Unrecognized tax benefits at January 1	$	1,042	$	1,025	$	516
Increase in gross amounts of tax positions related to prior years	782		17		509
Decrease in gross amounts of tax positions related to prior years	—		—		—
Decrease due to settlement with taxing authority	—		—		—
Decrease due to lapse in statute of limitations	—		—		—
Unrecognized tax benefits at December 31	$	1,824	$	1,042	$	1,025