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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table provides the components of income tax expense for the years ended December 31:

(In thousands)202420232022
Current income taxes:
Federal$21,883 $27,178 $48,920 
State7,569 8,223 16,630 
Total current29,452 35,401 65,550 
Deferred income taxes:
Federal(103)4,357 (7,214)
State(323)1,533 (2,277)
Total deferred(426)5,890 (9,491)
Total income tax expense$29,026 $41,291 $56,059 

The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits.

The Company is subject to U.S. federal income tax and income tax in various state jurisdictions. All tax years ending after December 31, 2020     are open to examination.
Temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities result in deferred taxes. Deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary difference, are presented in the following table at December 31 for the years indicated:

(In thousands)20242023
Deferred tax assets:
Allowance for credit losses$34,241 $30,663 
Lease liability11,412 12,262 
Employee benefits6,686 6,115 
Deferred loan fees and costs1,500 2,222 
Equity based compensation1,322 2,401 
Unrealized losses on investments available-for-sale31,673 33,087 
Loan and deposit premium/discount— 139 
Reserve for recourse loans and unfunded commitments424 1,225 
Net operating loss carryforward5,431 4,195 
Other81 157 
Gross deferred tax assets92,770 92,466 
Valuation allowance(5,431)(4,195)
Net deferred tax asset87,339 88,271 
Deferred tax liabilities:
Right of use asset(9,663)(10,292)
Depreciation(5,565)(4,559)
Intangible assets(1,768)(2,128)
Bond accretion(626)(542)
Fair value acquisition adjustments(583)(609)
Loan and deposit premium/discount(20)— 
Other(446)(486)
Gross deferred tax liabilities(18,671)(18,616)
Net deferred tax asset$68,668 $69,655 

The Company has approximately $46.4 million of state net operating loss carryover which begins to expire in 2032 and $36.9 million of state carryforward of disallowed net business excess interest expense. The Company believes that it is more likely than not that the future benefit from the state net operating loss and disallowed net business excess interest expense carryover will not be realized. As such, there is a valuation allowance on the deferred tax assets of the jurisdictions in which those net operating losses and disallowed net business excess interest expense relate.
The reconcilements between the statutory federal income tax rate and the effective rate for the years ended December 31 are presented in the following table:

(Dollars in thousands)202420232022
AmountPercentage of
Pre-Tax
Income		AmountPercentage of
Pre-Tax
Income		AmountPercentage of
Pre-Tax
Income
Income tax expense at federal statutory rate
$10,282 21.0 %$34,469 21.0 %$46,696 21.0 %
Increase/ (decrease) resulting from:
Tax exempt income, net(159)(0.3)(919)(0.6)(1,909)(0.9)
Bank-owned life insurance(1,472)(3.0)(802)(0.5)(662)(0.3)
State income taxes, net of federal income tax benefits5,724 11.7 7,707 4.7 11,339 5.1 
Goodwill impairment11,422 23.3 — — — — 
Nondeductible merger and acquisition expense756 1.5 — — — — 
Nondeductible executive compensation1,076 2.2 112 0.1 531 0.2 
Other, net1,397 2.9 724 0.5 64 0.1 
Total income tax expense and rate$29,026 59.3 %$41,291 25.2 %$56,059 25.2 %

The Inflation Reduction Act of 2022 was signed into law includes climate and energy provisions, introduces a 15% corporate alternative minimum tax ("CAMT") on corporations whose average annual adjusted financial statement income exceeds $1 billion, and a 1% excise tax on stock repurchases made by publicly traded US corporations. The provisions above generally are effective for tax years beginning after December 31, 2022. These provisions did not have a material impact on the Company's income taxes for 2022.