Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

December 31 (In thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses	$	18,153	$	19,512
Accumulated other comprehensive loss – Pension Plan	1,540		9,150
Accumulated other comprehensive loss – Unrealized losses on swaps	55		186
Deferred compensation	6,294		3,887
OREO valuation adjustments	909		1,012
Net deferred loan fees	2,569		3,283
Deferred contract bonus	432		571
Nonvested equity-based compensation	2,694		2,567
Net operating loss ("NOL") carryforward	3,197		3,629
Fixed assets	249		—
Operating lease liability	3,111		3,561
Partnership adjustments	69		—
Other	1,854		1,424
Total deferred tax assets	$	41,126	$	48,782
Deferred tax liabilities:
Accumulated other comprehensive loss - Unrealized gains on securities	$	5,623	$	10,507
Fixed assets	—		3,360
Deferred investment income	6,363		6,637
Pension Plan	19,182		20,407
MSRs	3,333		2,781
Partnership adjustments	—		204
Purchase accounting adjustments	880		604
Operating lease right-of-use asset	2,917		3,343
Lessor adjustments	2,764		3,433
Other	514		398
Total deferred tax liabilities	$	41,576	$	51,674
Net deferred tax liability	$	(450)	$	(2,892)

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for federal income taxes are shown below:

December 31, (In thousands)	2021		2020		2019
Currently payable
Federal	$	28,726	$	22,769	$	14,797
State	1,382		1,432		1,191
Amortization of qualified affordable housing projects	7,313		7,046		6,927
Deferred
Federal	(3,006)		(4,812)		(815)
State	(125)		287		(29)
Total	$	34,290	$	26,722	$	22,071

Schedule of income tax rate reconciliation

The following is a reconciliation of income tax expense to the amount computed at the statutory federal corporate income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019.

	2021		2020		2019
Statutory federal corporate income tax rate	21.0	%	21.0	%	21.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(1.2)	%	(1.5)	%	(2.0)	%
Bank owned life insurance	(0.5)	%	(0.7)	%	(0.8)	%
Investments in qualified affordable housing projects, net of tax benefits	(0.8)	%	(1.1)	%	(1.5)	%
KSOP dividend deduction	(0.5)	%	(0.6)	%	(0.6)	%
Other	0.2	%	0.2	%	1.6	%
Effective Tax Rate	18.2	%	17.3	%	17.7	%

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2021		2020		2019
January 1 Balance	$	633	$	954	$	1,226
Additions based on tax positions related to the current year	10		12		12
Additions for tax positions of prior years	—		—		2
Reductions for tax positions of prior years	—		—		(3)
Reductions due to statute of limitations	(304)		(333)		(283)
December 31 Balance	$	339	$	633	$	954