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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
(In Thousands)
Significant components of the provision for income taxes are as follows for the periods presented:
 Year Ended December 31,
 202320222021
Current
Federal$36,138 $39,507 $34,629 
State1,376 3,453 895 
37,514 42,960 35,524 
Deferred
Federal(1,187)1,630 9,168 
State(3,818)650 2,243 
(5,005)2,280 11,411 
$32,509 $45,240 $46,935 
The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:
 Year Ended December 31,
 202320222021
Tax at U.S. statutory rate$37,209 $44,375 $46,794 
Increase (decrease) in taxes resulting from:
Tax-exempt interest income(1,505)(1,832)(1,669)
BOLI income(2,197)(1,946)(1,547)
Investment tax credits(1,901)(928)(988)
Amortization of investment in low-income housing tax credits1,741 683 817 
State income tax expense, net of federal benefit(1,929)3,241 2,479 
Other items, net1,091 1,647 1,049 
$32,509 $45,240 $46,935 
Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented: 
December 31,
20232022
Deferred tax assets
Allowance for credit losses$53,432 $52,551 
Loans1,631 2,518 
Deferred compensation15,310 14,447 
Net unrealized losses on securities51,211 70,999 
Impairment of assets138 316 
Tax credits4,035 — 
Net operating loss carryforwards33 497 
Investments in partnerships1,491 1,164 
Lease liabilities under operating leases13,066 14,641 
Realized losses on securities4,892 — 
Other2,660 3,523 
Total deferred tax assets147,899 160,656 
Deferred tax liabilities
Fixed assets11,023 10,342 
Mortgage servicing rights21,282 19,624 
Junior subordinated debt1,708 1,948 
Intangibles2,447 2,702 
Lease right-of-use asset12,399 14,018 
Other3,344 1,614 
Total deferred tax liabilities52,203 50,248 
Net deferred tax assets$95,696 $110,408 
The effective tax rate was 18.82% and 21.78% for the year ended December 31, 2023 and 2022, respectively. The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2021 through 2023. The Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2021 through 2023.
The Company acquired federal and state net operating losses as part of its previous acquisitions, with varying expiration periods. While the Company has no remaining state net operating losses as of December 31, 2023, the remaining federal net operating losses have an indefinite carryforward period. Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the year ended December 31, 2023.
The table below presents the breakout of net operating losses as of the dates presented.
December 31,
20232022
Net Operating Losses
Federal$138 $1,101 
State— 5,666 
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below:
202320222021
Balance at January 1$407 $408 $402 
Additions based on positions related to current period78 65 62 
Reductions based on positions related to prior period— — — 
Reductions due to lapse of statute of limitations(86)(66)(56)
Balance at December 31$399 $407 $408 
If ultimately recognized, the Company does not anticipate any material increase in the effective tax rate for 2023 relative to any tax positions taken prior to January 1, 2023. The Company had accrued $26, $17 and $15 for interest and penalties related to unrecognized tax benefits as of December 31, 2023, 2022 and 2021, respectively.