Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

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

(dollars in thousands)	2020		2019		2018
Federal
Current	$	4,256	$	18,918	$	13,616
Deferred	(4,273)		(406)		3,517
Total Federal	(17)		18,512		17,133
State
Current	145		589		720
Deferred	(129)		25		(8)
Total State	16		614		712
Total Federal and State	$	(1)	$	19,126	$	17,845

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:

	2020		2019		2018
Statutory tax rate	21.0	%	21.0	%	21.0	%
Low income housing tax credits	(11.1)	%	(3.3)	%	(2.5)	%
Tax-exempt interest	(11.9)	%	(2.1)	%	(2.1)	%
Bank owned life insurance	(1.8)	%	(0.4)	%	(0.4)	%
Gain on sale of a majority interest of insurance business	—	%	—	%	0.7	%
Merger related expenses	—	%	0.3	%	—	%
Other	3.8	%	0.8	%	0.3	%
Impact of the Tax Act	—	%	—	%	(2.5)	%
Effective Tax Rate	—	%	16.3	%	14.5	%

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)	2020		2019
Deferred Tax Assets:
Allowance for credit losses	$	26,051	$	13,798
Lease liabilities	11,368		11,257
State net operating loss carryforwards	5,489		5,134
Net adjustment to funded status of pension	4,692		5,438
Low income housing partnerships	3,996		3,494
Other employee benefits	2,050		3,039
Other	3,798		1,856
Gross Deferred Tax Assets	57,444		44,016
Less: Valuation allowance	(5,489)		(5,134)
Total Deferred Tax Assets	51,955		38,882
Deferred Tax Liabilities:
Right-of-use lease assets	(10,141)		(10,476)
Net unrealized gains on securities available-for-sale	(7,125)		(2,570)
Deferred loan income	(6,796)		(3,555)
Prepaid pension	(5,209)		(5,971)
Purchase accounting adjustments	(1,971)		(1,269)
Depreciation on premises and equipment	(1,275)		(592)
Other	(1,245)		(1,243)
Total Deferred Tax liabilities	(33,762)		(25,676)
Net Deferred Tax Asset	$	18,193	$	13,206

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)	2020		2019		2018
Balance at beginning of year	$	1,051	$	768	$	909
Prior period tax positions	(18)		(10)		(251)
Current period tax positions	244		293		110
Balance at End of Year	$	1,277	$	1,051	$	768
Amount That Would Impact the Effective Tax Rate if Recognized	$	1,027	$	848	$	607