Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Provision for Federal and State Income Taxes

The provision for federal and state income taxes included in the accompanying consolidated statement of income consists of the following:

	For the Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Current:
Federal	$	18,498	$	15,043	$	9,770
State	1,337		1,098		972
Deferred:
Federal	(9,288)		(1,068)		(862)
State	(566)		(739)		263
	$	9,981	$	14,334	$	10,143

Income Tax Provision Differences from Expected Statutory Provision

The provision for income taxes differs from the expected statutory provision as follows:

	For the Years Ended December 31,
	2020		2019		2018
Expected provision at statutory rate	21.0	%	21.0	%	21.0	%
Difference resulting from:
Tax exempt interest income, net of disallowance	(3.8)		(3.2)		(4.0)
Increase in value of bank owned life insurance assets	(1.1)		(0.8)		(1.1)
Stock-based compensation	0.2		—		(0.2)
State income taxes, net of federal benefits	1.1		0.4		1.6
Adjustment to deferred tax assets and liabilities for enacted changes in tax laws and rates	—		—		(0.5)
Changes in valuation allowance	0.2		0.2		0.1
Other	(0.1)		0.3		(0.2)
Effective tax rate	17.5	%	17.9	%	16.7	%

Components of Deferred Tax Assets and Liabilities

The assets and liabilities giving rise to the Corporation's deferred tax assets and liabilities are as follows:

	At December 31,
(Dollars in thousands)	2020		2019
Deferred tax assets:
Allowance for credit losses, loans and leases	$	18,113	$	7,680
Deferred compensation	1,625		1,834
Actuarial adjustments on retirement benefits*	5,408		4,868
State net operating losses	5,621		5,071
Other-than-temporary impairments on equity securities	151		151
Net unrealized holding losses on securities available-for-sale and swaps*	483		915
Lease liability	8,227		8,177
Deferred loan fees and costs	583		—
Other deferred tax assets	2,148		1,146
Gross deferred tax assets	42,359		29,842
Valuation allowance	(4,766)		(4,284)
Total deferred tax assets, net of valuation allowance	37,593		25,558
Deferred tax liabilities:
Mortgage servicing rights	1,370		1,404
Retirement plans	5,309		5,299
Deferred loan fees and costs	—		1,330
Acquisition-related fair value adjustments	1,236		1,515
Intangible assets	2,580		1,956
Accounting method change adjustment	385		768
Depreciation	888		1,137
Right of use asset	7,491		7,481
Other deferred tax liabilities	1,820		1,053
Total deferred tax liabilities	21,079		21,943
Net deferred tax assets	$	16,514	$	3,615

*Represents the amount of deferred taxes recorded in accumulated other comprehensive income.