Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of Income Tax Expense Attributable to Operations

The significant components of income tax expense attributable to operations are as follows:

	Years ended December 31,
(In thousands)	2018		2017			2016
Current
Federal	$	15,762	$	35,839		$	30,492
State		5,977		6,599			5,628
Total Current	$	21,739	$	42,438		$	36,120

Deferred
Federal	$	2,281	$	3,850		$	3,994
State		416		(278	)		278
Total Deferred	$	2,697	$	3,572		$	4,272
Total income tax expense	$	24,436	$	46,010		$	40,392

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

	December 31,
(In thousands)	2018		2017
Deferred tax assets:
Allowance for loan losses	$	18,042	$	17,390
Deferred compensation		7,340		7,230
Postretirement benefit obligation		1,962		2,159
Fair value adjustments from acquisitions		663		919
Unrealized losses on securities		4,893		3,715
Accrued liabilities		913		769
Stock-based compensation expense		2,821		2,642
Other		1,008		711
Total deferred tax assets	$	37,642	$	35,535
Deferred tax liabilities:
Pension benefits	$	10,782	$	12,439
Amortization of intangible assets		11,525		11,110
Premises and equipment, primarily due to accelerated depreciation		4,973		2,792
Other		1,567		1,901
Total deferred tax liabilities	$	28,847	$	28,242
Net deferred tax asset at year-end	$	8,795	$	7,293
Net deferred tax asset at beginning of year		7,293		9,690
Increase (decrease) in net deferred tax asset	$	1,502	$	(2,397	)

Reconciliation of the Provision for Income taxes to the Amount Computed by Applying the Federal Statutory Rate

The following is a reconciliation of the provision for income taxes to the amount computed by applying the applicable Federal statutory rate to income before taxes:

	Years ended December 31
(In thousands)	2018			2017			2016
Federal income tax at statutory rate	$	28,770		$	44,857		$	41,581
Tax exempt income		(1,456	)		(2,303	)		(2,205	)
Net increase in cash surrender value of life insurance		(973	)		(1,780	)		(1,712	)
Federal tax credit		(1,499	)		(1,343	)		(1,323	)
State taxes, net of federal tax benefit		5,051			4,107			3,838
Federal tax reform (Tax Act)		-			4,407			-
Accounting method changes - tax rate change impact		(5,326	)		-			-
Stock-based compensation, excess tax benefit		(456	)		(1,619	)		-
Other, net		325			(316	)		213
Income tax expense	$	24,436		$	46,010		$	40,392

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of Federal and State gross unrecognized tax benefits ("UTBs") is as follows:

(In thousands)	2018			2017
Balance at January 1	$	665		$	559
Additions for tax positions of prior years		27			-
Reduction for tax positions of prior years		(159	)		(31	)
Current period tax positions		108			137
Balance at December 31	$	641		$	665
Amount that would affect the effective tax rate if recognized, gross of tax	$	506		$	525