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Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The income tax expense (benefit) attributable to income from operations is summarized as follows:
(In thousands)CurrentDeferredTotal
2020
Federal$22,199 $(5,247)$16,952 
State4,009 (1,037)2,972 
Total$26,208 $(6,284)$19,924 
2019
Federal$15,161 $2,668 $17,829 
State2,782 405 3,187 
Total$17,943 $3,073 $21,016 
2018
Federal$16,391 $2,281 $18,672 
State3,060 73 3,133 
Total$19,451 $2,354 $21,805 

The primary reasons for the differences between income tax expense and the amount computed by applying the statutory federal income tax rate to earnings are as follows:

202020192018
Statutory federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit2.4 2.5 2.4 
Tax exempt income(1.8)(1.5)(1.5)
Excess benefits from equity-based compensation(0.2)(0.8)(0.6)
Bank-owned life insurance income(0.5)(0.5)(0.4)
Federal tax credit(0.4)(0.7)(0.6)
All other(0.1)0.5 0.6 
Total20.4 %20.5 %20.9 %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows:

(In thousands)20202019
Deferred tax assets:
Allowance for credit losses$13,095 $9,913 
Lease liability7,858 8,363
Interest income on nonperforming loans500 368 
Compensation and benefits11,580 10,972 
Liabilities held at fair value20 
Deferred loan fees and costs1,783 732 
Other1,097 1,110 
Total$35,933 $31,462 
Deferred tax liabilities:
Prepaid pension10,254 9,856 
Right of use asset7,270 7,790
Depreciation3,735 4,688 
Intangibles1,266 1,128 
Purchase accounting adjustments5 274 
Leases2,425 2,472 
   Other1,504 1,478 
Total deferred tax liabilities$26,459 $27,686 
Net deferred tax asset at year-end$9,474 $3,776 
Net deferred tax asset at beginning of year$3,776 $6,849 
Decrease (increase) in net deferred tax asset5,698 (3,073)
CECL accounting standard adoption recorded through equity$586 $
Deferred tax expense$(6,284)$3,073 

The above analysis does not include recorded deferred tax assets (liabilities) of $(6.7) million and $(1.3) million as of December 31, 2020 and 2019, respectively, related to net unrealized holdings losses/(gains) in the available-for-sale securities portfolio. In addition, the analysis excludes recorded deferred tax assets of $17.1 million and $15.5 million, as of December 31, 2020 and 2019, respectively, related to employee benefit plans.

Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income, and the projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessment, management determined that no valuation allowance was necessary at December 31, 2020 and 2019.

At December 31, 2020 and December 31, 2019, the Company had no ASC 740-10 unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. The Company recognizes interest and penalties on unrecognized tax benefits in income tax expense in its Consolidated Statements of Income.

The Company is subject to U.S. federal income tax and income tax in New York and various state jurisdictions. All tax years ending after December 31, 2016 are open to examination by the taxing authorities.