Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of allocation of income tax

Total income tax was allocated for the years ended December 31, 2022, 2021 and 2020 as follows:             

	Years ended December 31,
	2022		2021	2020
Income tax expense	$	40,026	46,801	17,672
Shareholders’ equity for unrealized gain/(loss) on securities available-for-sale	(45,321)		(10,425)	5,061
Shareholders’ equity for pension adjustment	6,980		9,659	(3,774)
Unallocated income tax	$	1,685	46,035	18,959

Schedule of income tax expense (benefit) applicable to income before taxes

Income tax expense applicable to income before taxes consists of:         

	Years ended December 31,
	2022		2021	2020
Current tax provision/(benefit):
Federal	$	36,235	24,554	23,968
State	9,295		9,933	1,788
Total current tax provision/(benefit)	45,530		34,487	25,756
Deferred tax provision/(benefit):
Federal	(5,325)		10,752	(9,072)
State	(179)		1,562	988
Total deferred tax provision/(benefit)	(5,504)		12,314	(8,084)
Total income tax expense	$	40,026	46,801	17,672

Schedule of reconciliation of the expected federal statutory rate to the effective rate

A reconciliation of the expected federal statutory income tax rate to the effective rate, expressed as a percentage of pretax income for the years ended December 31, 2022, 2021 and 2020, is as follows:

	Years ended December 31,
	2022		2021		2020
Expected tax rate	21.0	%	21.0	%	21.0	%
Tax-exempt interest income	(1.1)	%	(0.9)	%	(1.7)	%
State income tax, net of federal benefit	4.0	%	4.5	%	2.2	%
Bank-owned life insurance	(0.9)	%	(0.6)	%	(1.1)	%
Stock-based compensation	0.1	%	(0.1)	%	0.2	%
Dividends on stock plans	(0.5)	%	(0.4)	%	(0.9)	%
Low income housing and historic tax credits	(0.2)	%	(0.2)	%	(0.9)	%
Other	0.6	%	—	%	0.3	%
Effective tax rate	23.0	%	23.3	%	19.1	%

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below:

	December 31,
	2022		2021
Deferred tax assets:
Deferred compensation expense	$	4,804	4,230
Bad debts	27,105		23,273
Other reserves	3,554		1,333
Accrued post-retirement benefit cost	502		900
Stock benefit plans	652		623
Pension and post-retirement benefits	2,767		9,747
Unrealized loss on the fair value of securities available-for-sale	49,414		4,093
Deferred income	95		341
Lease liability	13,101		12,958
Purchase accounting	696		432
Net operating loss	1,592		2,140
Other	1,877		922
Total deferred tax assets	106,159		60,992
Deferred tax liabilities:
Pension expense	6,231		6,993
Intangible assets	17,400		16,543
Mortgage servicing rights	1,768		2,278
Fixed assets	6,518		5,287
Net deferred loan costs	3,055		2,338
Right of use asset	12,463		12,322
Interest rate derivatives	123		341
Other	2,369		2,503
Total deferred tax liabilities	49,927		48,605
Net deferred tax asset	$	56,232	12,387

Summary of unrecognized tax benefits

The following table presents changes in unrecognized tax benefits at December 31, 2022, 2021 and 2020:            

	Year ended December 31,
	2022		2021	2020
Unrecognized tax benefits:
Balance, beginning of year	$	241	331	—
Increases related to prior year tax positions	252		37	336
Decreases related to prior year tax positions	(28)		(173)	(5)
Increases related to current year tax positions	8		46	—
Balance, end of year	$	473	241	331