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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2023202220232022
(Dollars in thousands)
Combined federal and state income tax provision (benefit)$17,613 $16,273 $(44,631)$30,915 
Effective income tax rate26.6 %24.1 %23.5 %23.1 %
The Company recorded net income tax expense/(benefit) of $17.6 million and $(44.6) million for the three and six months ended June 30, 2023, respectively, compared to net income tax expense of $16.3 million and $30.9 million for the three and six months ended June 30, 2022, respectively. The income tax benefit for the six months ended June 30, 2023 was primarily due to pretax losses which largely resulted from losses on sales of available for sale securities in the first quarter of 2023. The Company established a $17.4 million valuation allowance in the first quarter of 2023 against the capital loss carryforward deferred tax asset which resulted from the sale of securities for the amount of deferred tax asset management believes is not more-likely-than-not to be realized.
In addition, during the first quarter of 2023, the Company liquidated Market Street Securities Corporation (“MSSC”), a wholly owned subsidiary, and transferred all of MSSC’s assets to Eastern Bank. In connection with the liquidation and subsequent transfer of securities previously held by MSSC to Eastern Bank, the Company recognized an additional deferred income tax benefit of $23.7 million during the first quarter of 2023. This deferred income tax benefit resulted from a state tax rate change applied to the deferred tax asset related to the securities transferred to Eastern Bank.