Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Current:
Federal	$	16,775	$	18,188	$	17,611
State	1,520		1,447		1,365
Deferred:
Federal	(609)		(458)		3,440
State	(101)		(87)		113
	$	17,585	$	19,090	$	22,529

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,
	2023		2022		2021
Expected provision at statutory rate	21.0	%	21.0	%	21.0	%
Difference resulting from:
Tax exempt interest income, net of disallowance	(1.9)		(1.7)		(1.6)
Increase in value of bank owned life insurance assets	(0.8)		(0.8)		(0.7)
Stock-based compensation	(0.2)		(0.2)		(0.2)
State income taxes, net of federal benefits	1.2		1.1		1.0
Changes in valuation allowance	0.2		0.7		0.2
Federal benefit of state deferred tax asset revaluation	—		(0.8)		—
Other	0.3		0.3		—
Effective tax rate	19.8	%	19.6	%	19.7	%

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)	2023		2022
Deferred tax assets:
Allowance for credit losses, loans and leases	$	18,838	$	17,343
Deferred compensation	1,795		1,959
Actuarial adjustments on retirement benefits*	3,126		4,043
State net operating losses	3,778		3,348
Other-than-temporary impairments on equity securities	99		98
Net unrealized holding losses on securities available-for-sale and swaps*	10,342		12,471
Lease liability	7,687		7,275
Other deferred tax assets	2,577		2,016
Gross deferred tax assets	48,242		48,553
Valuation allowance	(3,527)		(2,975)
Total deferred tax assets, net of valuation allowance	44,715		45,578
Deferred tax liabilities:
Mortgage servicing rights	1,885		1,785
Retirement plans	4,719		4,907
Deferred loan fees and costs	1,539		897
Acquisition-related fair value adjustments	779		902
Intangible assets	4,349		3,742
Depreciation	1,534		1,575
Right of use asset	7,013		6,596
Other deferred tax liabilities	1,104		1,045
Total deferred tax liabilities	22,922		21,449
Net deferred tax assets	$	21,793	$	24,129

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