Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes is comprised of the following components for the periods indicated below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Income taxes currently payable	$	2,777	$	4,706	$	16,137	$	25,817
Deferred income taxes	(2,016)		4,537		(3,254)		4,202
Provision for income taxes	$	761	$	9,243	$	12,883	$	30,019

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows: 

	September 30,		December 31,
(In thousands)	2024		2023
Deferred tax assets:
Loans acquired	$	2,654	$	3,644
Allowance for credit losses	55,495		53,445
Valuation of foreclosed assets	480		480
Tax NOLs from acquisition	10,197		9,643
Deferred compensation payable	4,002		3,355
Accrued equity and other compensation	6,854		8,048
Acquired securities	7,572		7,569
Right-of-use lease liability	17,107		16,501
Unrealized loss on AFS securities	116,437		143,624
Allowance for unfunded commitments	6,148		6,148
Other	8,403		7,627
Gross deferred tax assets	235,349		260,084
Deferred tax liabilities:
Goodwill and other intangible amortization	(39,267)		(41,174)
Accumulated depreciation	(24,975)		(24,632)
Right-of-use lease asset	(16,631)		(16,136)
Unrealized gain on swaps	(19,449)		(25,371)
Other	(11,263)		(10,995)
Gross deferred tax liabilities	(111,585)		(118,308)
Net deferred tax asset	$	123,764	$	141,776

Schedule of Reconciliation of Income Tax Expense

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown for the periods indicated below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Computed at the statutory rate (21%)	$	5,354	$	11,862	$	24,624	$	38,045
Increase (decrease) in taxes resulting from:
State income taxes, net of federal tax benefit	(644)		(40)		(1,370)		657
Stock-based compensation	(14)		28		454		469
Tax exempt interest income	(3,810)		(3,848)		(11,518)		(11,523)
Tax exempt earnings on BOLI	(755)		(636)		(2,376)		(1,973)
Federal tax credits	(546)		(567)		(1,667)		(1,501)
Other differences, net	1,176		2,444		4,736		5,845
Actual tax provision	$	761	$	9,243	$	12,883	$	30,019