Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Current:
Federal	$	12,334	$	16,555	$	15,197
State	1,489		1,709		1,474
Total	13,823		18,264		16,671
Deferred:
Federal	1,743		(622)		(1,720)
State	42		(15)		(41)
Total	1,785		(637)		(1,761)
Income tax expense	$	15,608	$	17,627	$	14,910

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)	2022			2021			2020
Computed tax expense	$	16,180		$	18,195		$	15,623
Increase (reduction) in income taxes resulting from:
State taxes, net of federal benefit	1,209			1,338			1,132
Low income housing credits	(846)			(591)			(500)
Tax exempt income	(732)			(782)			(894)
Income from life insurance	(399)			(496)			(532)
Share-based awards	(100)			(103)			33
Other	296			66			48
Income tax expense	$	15,608		$	17,627		$	14,910
Income before income tax expense	$	77,047		$	86,641		$	74,396
Effective tax rate	20.3		%	20.3		%	20.0		%

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,
	2022				2021
(In thousands)	Asset		Liability		Asset		Liability
Net unrealized losses on AFS debt securities	$	36,027	$	—	$	321	$	—
Allowance for credit losses	8,640		—		7,837		—
Net operating loss and tax credit carryforward	7,913		—		8,741		—
Pension and other benefits	4,536		—		5,027		—
Deferred compensation and benefits	892		—		1,002		—
Deferred loan origination fees	—		(3,253)		—		(2,038)
Depreciation	—		(2,536)		—		(2,382)
Net unrealized (gains) losses on derivative instruments	—		(1,613)		528		—
Other	—		(389)		174		—
Gross deferred tax assets (liabilities)	$	58,008	$	(7,791)	$	23,630	$	(4,420)
Valuation allowance on deferred tax assets			—				—
Net deferred tax assets			$	50,217			$	19,210