Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Current:
Federal	$	18,188	$	17,611	$	18,498
State	1,447		1,365		1,337
Deferred:
Federal	(458)		3,440		(9,288)
State	(87)		113		(566)
	$	19,090	$	22,529	$	9,981

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,
	2022		2021		2020
Expected provision at statutory rate	21.0	%	21.0	%	21.0	%
Difference resulting from:
Tax exempt interest income, net of disallowance	(1.7)		(1.6)		(3.8)
Increase in value of bank owned life insurance assets	(0.8)		(0.7)		(1.1)
Stock-based compensation	(0.2)		(0.2)		0.2
State income taxes, net of federal benefits	1.1		1		1.1
Changes in valuation allowance	0.7		0.2		0.2
Federal benefit of state deferred tax asset revaluation	(0.8)		—		—
Other	0.3		—		(0.1)
Effective tax rate	19.6	%	19.7	%	17.5	%

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)	2022		2021
Deferred tax assets:
Allowance for credit losses, loans and leases	$	17,343	$	15,739
Deferred compensation	1,959		2,004
Actuarial adjustments on retirement benefits*	4,043		3,982
State net operating losses	3,348		6,348
Other-than-temporary impairments on equity securities	98		120
Net unrealized holding losses on securities available-for-sale and swaps*	12,471		370
Lease liability	7,275		7,317
Other deferred tax assets	2,016		1,526
Gross deferred tax assets	48,553		37,406
Valuation allowance	(2,975)		(5,558)
Total deferred tax assets, net of valuation allowance	45,578		31,848
Deferred tax liabilities:
Mortgage servicing rights	1,785		1,671
Retirement plans	4,907		5,419
Deferred loan fees and costs	897		65
Acquisition-related fair value adjustments	902		1,093
Intangible assets	3,742		3,204
Depreciation	1,575		1,083
Right of use asset	6,596		6,650
Other deferred tax liabilities	1,045		1,241
Total deferred tax liabilities	21,449		20,426
Net deferred tax assets	$	24,129	$	11,422

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