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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The current and deferred amounts of income tax expense for the years ended December 31, 2021, 2020, and 2019 are as follows:

Years Ended December 31,
202120202019
(In thousands)
Current:
Federal$12,443 $5,072 $5,933 
State3,980 3,844 2,905 
Total current16,423 8,916 8,838 
Deferred:
Federal12,594 9,847 8,275 
State5,115 (109)(748)
Total deferred17,709 9,738 7,527 
Total income tax expense $34,132 $18,654 $16,365 

The Company reported deferred tax expense (benefit) of $8.0 million, $(5.6) million, and $(5.5) million for the years ended December 31, 2021, 2020, and 2019, respectively, related to the unrealized gains (losses) on securities available for sale, which is reported in accumulated other comprehensive income (loss), net of tax. Additionally, the Company recorded a deferred tax (benefit) expense of $1.1 million, $900,000, and $779,000, respectively, related to the reclassification adjustment of actuarial net (loss) gain on employee benefit obligations, which is reported in accumulated other comprehensive income, net of tax. Deferred tax assets and/or liabilities for the years ended December 31, 2021, 2020, and 2019 also includes $1.5 million, $5.4 million, and $2.3 million respectively, recorded as a result of purchase accounting related to the Freehold, Roselle and Stewardship acquisitions.

A reconciliation between the amount of reported total income tax expense and the amount computed by multiplying the applicable statutory federal income tax rate of 21% is as follows:
Years Ended December 31,
202120202019
(In thousands)
Tax expense at applicable statutory rate$26,498 $16,013 $14,927 
Increase (decrease) in taxes resulting from:
State tax, net of federal income tax benefit7,185 2,951 1,704 
ESOP fair market value adjustment375 187 272 
Tax exempt interest income(15)(11)(6)
Income from Bank-owned life insurance(863)(1,075)(1,246)
Dividend received deduction(14)(9)(8)
Non-deductible merger-related expenses53 42 222 
Non-deductible compensation expense— — 398 
Other, net913 556 102 
Total income tax expense$34,132 $18,654 $16,365 
(15)    Income Taxes (continued)

The net deferred tax asset is included in other assets in the Consolidated Statements of Financial Condition. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are as follows:
At December 31,
20212020
(In thousands)
Deferred tax assets:
Allowance for loan losses$17,486 $20,878 
Post-retirement benefits5,974 5,544 
Deferred compensation3,519 2,779 
Retirement Income Maintenance plan2,767 2,471 
ESOP810 624 
Stock-based compensation2,288 1,699 
Reserve for uncollected interest28 126 
Net unrealized losses on debt securities and defined benefit plans17,809 18,511 
Federal and State NOLs9,667 9,719 
Alternative minimum assessment carryforwards2,156 2,156 
Charitable contribution carryforward4,529 6,359 
Purchase accounting1,551 1,024 
Lease liability5,462 5,609 
Other items4,077 3,215 
Gross deferred tax assets78,123 80,714 
Valuation allowance(1,965)(2,002)
76,158 78,712 
Deferred tax liabilities:
Pension expense61,530 49,225 
Depreciation6,655 6,118 
Deferred loan costs10,630 8,555 
Intangible assets1,594 1,597 
Lease right-of-use asset5,191 5,317 
Other items307 716 
Total gross deferred tax liabilities85,907 71,528 
Net deferred tax (liability) asset$(9,749)$7,184 

Retained earnings at December 31, 2021 and 2020 includes approximately $21.5 million for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include the failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to stockholders.

Management believes that not all existing net deductible temporary differences that comprise the net deferred tax asset will reverse during periods in which the Company generates sufficient net taxable income. Accordingly, management has established a valuation allowance. Significant changes in the Company's operations and or economic conditions could affect the benefits of the recognized net deferred tax asset. Based on all available evidence, a valuation allowance was established for the portion of the state tax benefit that is not more likely than not to be realized. At both December 31, 2021 and 2020, the Company's valuation allowance totaled $2.0 million. Based upon projections of future taxable income and the ability to carryforward net operating losses indefinitely, management believes it is more likely than not the Company will realize the remaining deferred tax assets.
(15)    Income Taxes (continued)

The Company had federal net operating losses from the acquisition of Roselle of approximately $9.9 million and $11.9 million at December 31, 2021 and 2020, respectively. These net operating losses are subject to an annual limitation under Code Section 382 and will begin to expire in 2036 if not used.

The Company had New Jersey net operating loss carryforwards of $116.1 million and $108.4 million, respectively, at December 31, 2021 and 2020. If not utilized, these carryforwards will expire periodically through 2040. At both December 31, 2021 and 2020, the Company had approximately $2.2 million of New Jersey AMA Tax Credits. These credits do not expire.

The Company files income tax returns in the United States federal jurisdiction and in the states of New Jersey, New York and Pennsylvania. At December 31, 2021, the Company is no longer subject to federal income tax examination for the years prior to 2018. Columbia Bank MHC and its subsidiaries' New York returns are currently under audit for the tax years 2016 through 2019. The Company is open for examination by the State of New Jersey for years after 2017 and by the State of Pennsylvania.