Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation from Federal Statutory Income Tax Rate to Effective Tax Rate

Reconciliation from the federal statutory income tax rate to the effective tax rate is as follows:

	For the Years Ended December 31,
	2020			2019			2018
Federal statutory tax rate		21.0	%		21.0	%		21.0	%
Net tax-exempt interest income on securities and loans of state and political subdivisions		(4.2	%)		(3.3	%)		(3.2	%)
State income taxes, net of federal tax effect		1.9	%		1.7	%		1.7	%
Bank-owned life insurance		(1.1	%)		(0.6	%)		(0.8	%)
General business credits		(3.7	%)		(2.2	%)		(1.6	%)
All other—net		2.0	%		1.2	%		0.9	%
Effective tax rate		15.9	%		17.8	%		18.0	%

Provision for Income Taxes Applicable to Income Before Taxes

The provision for income taxes applicable to income before taxes consists of the following:

	For the Years Ended December 31,
(in thousands)	2020			2019		2018
Current:
Federal	$	27,924		$	22,540	$	20,707
State		5,629			3,977		3,542
Deferred:
Federal		(8,418	)		7,736		6,864
State		(2,100	)		88		299
Total	$	23,035		$	34,341	$	31,412

Schedule of Income Tax Amounts were Recorded in Shareholder's Equity as Elements of Other Comprehensive Income

The following income tax amounts were recorded in shareholders’ equity as elements of other comprehensive income:

(in thousands)		2020				2019				2018
Securities and defined benefit pension plan unrecognized items		$	9,730			$	11,570			$	(1,250	)

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following:

	December 31,
(in thousands)	2020			2019			2018
Deferred tax assets:
Allowance for loan losses	$	44,859		$	12,788		$	11,207
Compensation and benefits		6,894			7,144			5,851
Security gains		2,113			3,031			3,707
Non-accrual interest income		1,135			1,297			1,388
Tax credit carryforwards		—			149			—
Net operating loss carryforwards		5,472			6,923			4,854
Fair value adjustments on securities available-for-sale		—			—			6,345
Lease accrual		13,530			13,787			—
Other		5,441			2,314			2,125
Gross deferred tax assets		79,444			47,433			35,477
Deferred tax liabilities:
Depreciation and amortization		(3,414	)		(4,014	)		(1,020	)
Accretion on securities		(274	)		(339	)		(461	)
Deferred fees and costs		(3,018	)		(2,388	)		(1,641	)
Purchase accounting adjustments		(8,669	)		(2,787	)		(1,003	)
Fair value adjustments on securities available-for-sale		(14,865	)		(5,749	)		—
Partnership adjustments		(555	)		(521	)		(680	)
Lease - right of use assets		(12,438	)		(13,064	)		—
Other		(168	)		(40	)		(367	)
Gross deferred tax liabilities		(43,401	)		(28,902	)		(5,172	)
Net deferred tax assets	$	36,043		$	18,531		$	30,305

Schedule of Unrecognized Tax Benefits (Excluding Interest and Federal Income Tax Benefit of Unrecognized State Tax Benefits)

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and the federal income tax benefit of unrecognized state tax benefits) is as follows:

	For the Years Ended December 31,
(in thousands)	2020			2019			2018
Balance at beginning of year	$	434		$	465		$	467
Additions based on tax positions related to the current year		—			58			68
Reductions for tax positions of prior years		—			—			—
Reductions due to the statute of limitations		(110	)		(89	)		(70	)
Settlements		—			—			—
Balance at end of year	$	324		$	434		$	465