Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The current and deferred amounts of income tax expense for 2020, 2019 and 2018 are as follows (dollars in thousands):

	2020		2019		2018
Current:
Federal	$	19,590	$	15,509	$	8,902
State		7,006		5,018		954
Subtotal		26,596		20,527		9,856
Deferred:
Federal		(3,881)		916		2,455
State		(3,614)		(812)		(1,529)
Subtotal		(7,495)		104		926
Income tax expense	$	19,101	$	20,631	$	10,782

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

On July 1, 2018 New Jersey Governor Phil Murphy signed Assembly Bill 4202 (“the Bill”) into law. The legislation imposes a temporary surtax on corporations earning New Jersey allocated income in excess of $1 million of 2.5% for tax years beginning on or after January 1, 2018 through December 31, 2019, and of 1.5% for tax years beginning on or after January 1, 2020 through December 31, 2021. However, in 2020, this surtax was extended through December 31, 2023, at the 2.5% level. The legislation also requires combined filing for members of an affiliated group for tax years beginning on or after January 1, 2019, changing New Jersey’s current status as a separate return state, and limits the deductibility of dividends received.

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory federal tax rate for the following reasons (dollars in thousands):

	2020			2019			2018
Income before income tax expense	$	90,390		$	94,026		$	71,134
Federal statutory rate		21	%		21	%		21	%
Computed “expected” Federal income tax expense		18,982			19,745			14,938
State tax, net of federal tax benefit		1,913			3,436			1,104
Impact of the Tax Cuts and Jobs Act 2017		-			-			(790)
Impact of the “the Bill”		-			-			(618)
Bank owned life insurance		(1,052)			(732)			(650)
Tax-exempt interest and dividends		(1,491)			(2,519)			(1,521)
Tax benefits from stock-based compensation		157			(27)			(1,100)
Other, net		592			728			(581)
Income tax expense	$	19,101		$	20,631		$	10,782

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability as of December 31, 2020 and 2019 are presented in the following table:

	2020		2019
	(dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	23,399	$	11,333
Purchase accounting		-		4,543
Pension actuarial losses		1,385		-
New Jersey net operating loss		4,370		3,424
Deferred compensation		1,835		1,440
Unrealized losses on securities and swaps		-		1,509
Deferred loan costs, net of fees		357		20
Capital lease		225		230
Nonaccrual interest		51		69
Other		4,519		2,240
Total deferred tax assets	$	36,141	$	24,808
Deferred tax liabilities
Employee benefit plans	$	(2,161)	$	(2,131)
Purchase accounting		(1,821)		-
Pension actuarial gains		-		(1,062)
Depreciation		(187)		(1,146)
Prepaid expenses		(201)		(173)
Market discount accretion		(428)		(32)
Unrealized gains on securities and swaps		(2,171)		-
Total deferred tax liabilities		(6,969)		(4,544)
Net deferred tax assets	$	29,172	$	20,264