Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Components of Income Tax Expense Attributable to Operations

The significant components of income tax expense attributable to operations are as follows:

	Years Ended December 31,
(In thousands)	2020			2019			2018
Current
Federal	$	36,358		$	28,475		$	15,762
State		9,768			7,653			5,977
Total Current	$	46,126		$	36,128		$	21,739
Deferred
Federal	$	(14,021	)	$	(1,379	)	$	2,281
State		(3,406	)		(338	)		416
Total Deferred	$	(17,427	)	$	(1,717	)	$	2,697
Total income tax expense	$	28,699		$	34,411		$	24,436

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

	December 31,
(In thousands)	2020		2019
Deferred tax assets:
Allowance for loan losses	$	27,282	$	18,535
Lease liability		8,141		9,331
Deferred compensation		11,602		8,336
Postretirement benefit obligation		1,511		1,631
Fair value adjustments from acquisitions		259		422
Loan fees		5,400		1,384
Accrued liabilities		1,307		1,176
Stock-based compensation expense		3,213		3,032
Other		3,558		1,498
Total deferred tax assets	$	62,273	$	45,345
Deferred tax liabilities:
Pension benefits	$	14,406	$	13,014
Lease right-of-use asset		6,567		9,259
Amortization of intangible assets		12,725		12,202
Premises and equipment, primarily due to accelerated depreciation		4,774		5,137
Unrealized gain on securities		7,732		1,770
Other		952		1,429
Total deferred tax liabilities	$	47,156	$	42,811
Net deferred tax asset at year-end	$	15,117	$	2,534
Net deferred tax asset at beginning of year		2,534		8,795
Increase (decrease) in net deferred tax asset	$	12,583	$	(6,261	)

Reconciliation of the Provision for Income taxes to the Amount Computed by Applying the Federal Statutory Rate

The following is a reconciliation of the provision for income taxes to the amount computed by applying the applicable Federal statutory rate to income before taxes:

	Years Ended December 31
(In thousands)	2020			2019			2018
Federal income tax at statutory rate	$	27,948		$	32,641		$	28,770
Tax exempt income		(981	)		(1,233	)		(1,456	)
Net increase in cash surrender value of life insurance		(1,135	)		(927	)		(973	)
Federal tax credit		(1,705	)		(1,458	)		(1,499	)
State taxes, net of federal tax benefit		5,026			5,773			5,051
Accounting method changes - tax rate change impact		-			-			(5,326	)
Stock-based compensation, excess tax benefit		(152	)		(342	)		(456	)
Other, net		(302	)		(43	)		325
Income tax expense	$	28,699		$	34,411		$	24,436

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of Federal and State gross unrecognized tax benefits (“UTBs”) is as follows:

(In thousands)	2020		2019
Balance at January 1	$	779	$	641
Additions for tax positions of prior years		254		26
Current period tax positions		145		112
Balance at December 31	$	1,178	$	779
Amount that would affect the effective tax rate if recognized, gross of tax	$	931	$	615