Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

The following table presents the composition of income tax expense (benefit) for the years ended December 31:

(dollars in thousands)	2019			2018			2017
Federal
Current	$	18,918		$	13,616		$	32,282
Deferred	(406		)	3,517			13,980
Total Federal	18,512			17,133			46,262
State
Current	589			720			323
Deferred	25			(8		)	(148		)
Total State	614			712			175
Total Federal and State	$	19,126		$	17,845		$	46,437

Schedule of Statutory to Effective Tax Rate Reconciliation

The following table presents a reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31:

	2019		2018		2017
Statutory tax rate	21.0	%	21.0	%	35.0	%
Low income housing tax credits	(3.3	)%	(2.5	)%	(2.9	)%
Tax-exempt interest	(2.1	)%	(2.1	)%	(4.0	)%
Bank owned life insurance	(0.4	)%	(0.4	)%	(0.8	)%
Gain on sale of a majority interest of insurance business	—	%	0.7	%	—	%
Merger related expenses	0.3	%	—	%	—	%
Other	0.8	%	0.3	%	0.3	%
Impact of the Tax Act	—	%	(2.5	)%	11.3	%
Effective Tax Rate	16.3	%	14.5	%	38.9	%

Schedule of Significant Components of Temporary Differences

The following table presents significant components of our temporary differences as of the dates presented:

	December 31,
(dollars in thousands)	2019			2018
Deferred Tax Assets:
Allowance for loan losses	$	13,798		$	13,463
Net unrealized losses on securities available-for-sale	—			1,091
Other employee benefits	3,039			2,712
Low income housing partnerships	3,494			3,249
Net adjustment to funded status of pension	5,438			5,173
Lease liabilities	11,257			—
State net operating loss carryforwards	5,134			4,573
Other	1,856			2,856
Gross Deferred Tax Assets	44,016			33,117
Less: Valuation allowance	(5,134		)	(4,573		)
Total Deferred Tax Assets	38,882			28,544
Deferred Tax Liabilities:
Net unrealized gains on securities available-for-sale	(2,570		)	—
Prepaid pension	(5,971		)	(6,164		)
Deferred loan income	(3,555		)	(3,219		)
Purchase accounting adjustments	(1,269		)	(100		)
Depreciation on premises and equipment	(592		)	(477		)
Right-of-use lease assets	(10,476		)	—
Other	(1,243		)	(1,375		)
Total Deferred Tax liabilities	(25,676		)	(11,335		)
Net Deferred Tax Asset	$	13,206		$	17,209

Schedule of Reconciliation of Change in Federal and State Gross Unrecognized Tax Benefits

The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31:

(dollars in thousands)	2019			2018			2017
Balance at beginning of year	$	768		$	909		$	804
Prior period tax positions	(10		)	(251		)	(37		)
Current period tax positions	293			110			142
Balance at End of Year	$	1,051		$	768		$	909
Amount That Would Impact the Effective Tax Rate if Recognized	$	848		$	607		$	770