Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The current and deferred components of income tax expense on the consolidated statements of income were as follows:


	For The Year Ended December 31,
(In thousands)	2020		2019		2018
Current:
Federal	$	15,197	$	11,876	$	14,102
State	1,474		1,241		1,206
	16,671		13,117		15,308
Deferred:
Federal	(1,720)		1,230		(2,541)
State	(41)		29		(61)
	(1,761)		1,259		(2,602)
Income tax expense	$	14,910	$	14,376	$	12,706

Reconciliation of Expected Income Tax Benefit Computed Using Federal Statutory Income Tax Rate

The income tax expense differs from the amount computed by applying the statutory federal income tax rate of 21.0% as a result of the following:


	For The Year Ended December 31,
(Dollars in thousands)	2020			2019			2018
Computed tax expense	$	15,623		$	15,032		$	13,813
Increase (reduction) in income taxes resulting from:
State taxes, net of federal benefit	1,132			1,003			905
Tax exempt income	(894)			(738)			(741)
Income from life insurance	(532)			(509)			(510)
Low income housing credits	(500)			(430)			(465)
Share-based awards	33			(60)			(250)
Other	48			78			(46)
Income tax expense	$	14,910		$	14,376		$	12,706
Income before income taxes	$	74,396		$	71,579		$	65,777
Effective tax rate	20.0		%	20.1		%	19.3		%

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of the dates indicated:


	December 31,
	2020				2019
(In thousands)	Asset		Liability		Asset		Liability
Net operating loss and tax credit carryforward	$	9,593	$	—	$	10,421	$	—
Allowance for loan losses	8,693		—		5,416		—
Pension and other benefits	4,878		—		4,492		—
Net unrealized losses on derivative instruments	1,267		—		1,656		—
Deferred compensation and benefits	961		—		919		—
Net unrealized gains on AFS debt securities	—		(8,027)		—		(890)
Depreciation	—		(3,204)		—		(3,053)
Deferred loan origination fees	—		(2,111)		—		(2,119)
Other			(94)				(19)
Gross deferred tax assets (liabilities)	$	25,392	$	(13,436)	$	22,904	$	(6,081)
Valuation allowance on deferred tax assets			—				—
Net deferred tax assets			$	11,956			$	16,823