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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income tax expense for the years ended December 31, 2022, 2021, and 2020 are as follows:

Years Ended December 31,
202220212020
(In thousands)
Current:
Federal$13,253 $12,443 $5,072 
State4,681 3,980 3,844 
Total current17,934 16,423 8,916 
Deferred:
Federal9,222 12,594 9,847 
State3,547 5,115 (109)
Total deferred12,769 17,709 9,738 
Total income tax expense $30,703 $34,132 $18,654 

The Company reported deferred tax expense (benefit) of $53.4 million, $8.0 million, and $(5.6) million for the years ended December 31, 2022, 2021, and 2020, 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 $749,000, $1.1 million, and $900,000, 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, 2022, 2021, and 2020 also includes $9.6 million, $1.5 million, and $5.4 million respectively, recorded as a result of purchase accounting related to the RSI, Freehold, Roselle and Stewardship acquisitions. Deferred tax assets for the year ended December 31, 2022 also includes $2.4 million related to the adoption of CECL on January 1, 2022.

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,
202220212020
(In thousands)
Tax expense at applicable statutory rate$24,544 $26,498 $16,013 
Increase (decrease) in taxes resulting from:
State tax, net of federal income tax benefit6,449 7,185 2,951 
ESOP fair market value adjustment540 375 187 
Tax exempt interest income(31)(15)(11)
Income from Bank-owned life insurance(1,179)(863)(1,075)
Dividend received deduction(10)(14)(9)
Non-deductible merger-related expenses40 53 42 
Other, net350 913 556 
Total income tax expense$30,703 $34,132 $18,654 
(15)    Income Taxes (continued)

The net deferred tax asset/liability is included in other assets/liabilities 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, 2022 and 2021 are as follows:
At December 31,
20222021
(In thousands)
Deferred tax assets:
Allowance for credit losses$14,990 $17,486 
Post-retirement benefits6,002 5,974 
Deferred compensation3,619 3,519 
Retirement Income Maintenance plan3,062 2,767 
ESOP990 810 
Stock-based compensation2,386 2,288 
Reserve for uncollected interest35 28 
Net unrealized losses on debt securities and defined benefit plans70,060 17,809 
Federal and State NOLs13,333 9,667 
Alternative minimum assessment carryforwards2,156 2,156 
Charitable contribution carryforward3,514 4,529 
Purchase accounting2,805 1,551 
Lease liability5,264 5,462 
Other items7,002 4,077 
Gross deferred tax assets135,218 78,123 
Valuation allowance(1,965)(1,965)
133,253 76,158 
Deferred tax liabilities:
Pension expense68,825 61,530 
Depreciation5,945 6,655 
Deferred loan costs14,724 10,630 
Intangible assets1,616 1,594 
Lease right-of-use asset4,958 5,191 
Other items286 307 
Total gross deferred tax liabilities96,354 85,907 
Net deferred tax asset (liability)$36,899 $(9,749)

Retained earnings at December 31, 2022 and 2021 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 assets. Management believes, based on current facts, that it is more likely than not that there will be sufficient taxable income in future years to realize federal deferred tax assets and that it is more likely than not that the benefits from certain state temporary differences will not be realized, and therefore, 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, 2022 and 2021, 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 $7.8 million and $9.9 million at December 31, 2022 and 2021, respectively. Roselle net operating losses are subject to a 20 year carryforward. The Company also had federal net operating losses from the acquisition of RSI of approximately $8.6 million at December 31, 2022. RSI net operating losses have an indefinite carryover subject to an 80% taxable income utilization. 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 $147.0 million and $116.1 million, respectively, at December 31, 2022 and 2021. If not utilized, these carryforwards will expire periodically through 2042. At both December 31, 2022 and 2021, 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, 2022, the Company is no longer subject to federal income tax examination for the years prior to 2019. 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 2018 and by the State of Pennsylvania for years after 2017.