Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

The following table presents the composition of income tax expense (benefit) for the years ended December 31:

(dollars in thousands)	2021		2020		2019
Federal
Current	$	22,581	$	4,256	$	18,918
Deferred	2,273		(4,273)		(406)
Total Federal	24,854		(17)		18,512
State
Current	361		145		589
Deferred	110		(129)		25
Total State	471		16		614
Total Federal and State	$	25,325	$	(1)	$	19,126

Schedule of Statutory to Effective Tax Rate Reconciliation

The following table presents a reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31:

	2021		2020		2019
Statutory tax rate	21.0	%	21.0	%	21.0	%
Low income housing tax credits	(1.5)	%	(11.1)	%	(3.3)	%
Tax-exempt interest	(1.3)	%	(11.9)	%	(2.1)	%
Bank owned life insurance	(0.3)	%	(1.8)	%	(0.4)	%
Merger related expenses	—	%	—	%	0.3	%
Other	0.8	%	3.8	%	0.8	%
Effective Tax Rate	18.7	%	—	%	16.3	%

Schedule of Significant Components of Temporary Differences

The following table presents significant components of our temporary differences as of the dates presented:

	December 31,
(dollars in thousands)	2021		2020
Deferred Tax Assets:
Allowance for credit losses	$	22,083	$	26,051
Lease liabilities	10,876		11,368
State net operating loss carryforwards	5,565		5,489
Net adjustment to funded status of pension	3,922		4,692
Low income housing partnerships	3,270		3,996
Other employee benefits	3,433		2,050
Other	3,973		3,798
Gross Deferred Tax Assets	53,122		57,444
Less: Valuation allowance	(5,565)		(5,489)
Total Deferred Tax Assets	47,557		51,955
Deferred Tax Liabilities:
Right-of-use lease assets	(9,603)		(10,141)
Net unrealized gains on securities available-for-sale	(2,004)		(7,125)
Deferred loan income	(6,697)		(6,796)
Prepaid pension	(4,566)		(5,209)
Purchase accounting adjustments	(1,954)		(1,971)
Depreciation on premises and equipment	(1,107)		(1,275)
Other	(1,466)		(1,245)
Total Deferred Tax liabilities	(27,397)		(33,762)
Net Deferred Tax Asset	$	20,160	$	18,193

Schedule of Reconciliation of Change in Federal and State Gross Unrecognized Tax Benefits

The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31:

(dollars in thousands)	2021		2020		2019
Balance at beginning of year	$	1,277	$	1,051	$	768
Prior period tax positions	—		(18)		(10)
Current period tax positions	54		244		293
Balance at End of Year	$	1,331	$	1,277	$	1,051
Amount That Would Impact the Effective Tax Rate if Recognized	$	1,069	$	1,027	$	848