Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022
Deferred tax assets:
Allowance for credit losses	$	18,248	$	18,615
Accumulated other comprehensive loss – Pension Plan	—		1,776
Accumulated other comprehensive loss – Unrealized losses on debt securities AFS	18,045		25,443
Deferred compensation	6,177		6,255
OREO valuation adjustments	100		11
Net deferred loan fees	1,384		1,898
Deferred contract bonus	205		317
Nonvested equity-based compensation	3,019		2,827
Net operating loss ("NOL") carryforward	2,222		2,654
Capital loss carryforward	—		299
Fixed assets	1,243		510
Operating lease liability	3,620		4,206
Other	1,759		1,950
Total deferred tax assets	$	56,022	$	66,761
Deferred tax liabilities:
Accumulated other comprehensive gain – Pension Plan	$	449	$	—
Deferred investment income	2,455		4,890
Pension Plan	19,962		19,678
MSRs	3,196		3,445
Partnership adjustments	1,540		884
Purchase accounting adjustments	807		952
Operating lease right-of-use asset	3,426		3,837
Lessor adjustments	2,308		2,325
Other	614		565
Total deferred tax liabilities	$	34,757	$	36,576
Net deferred tax asset	$	21,265	$	30,185

Schedule of Components of Income Tax Expense (Benefit)

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

 

December 31, (In thousands)	2023		2022		2021
Currently payable
Federal	$	18,118	$	22,574	$	28,726
State	1,190		1,180		1,382
Amortization of qualified affordable housing projects	8,265		7,743		7,313
Deferred
Federal	(708)		464		(3,006)
State	5		147		(125)
Total	$	26,870	$	32,108	$	34,290

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, 2023, 2022 and 2021.

 

	2023		2022		2021
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	(1.9)	%	(1.6)	%	(1.2)	%
Bank owned life insurance	(0.7)	%	(0.7)	%	(0.5)	%
Investments in qualified affordable housing projects, net of tax benefits	(1.0)	%	(0.8)	%	(0.8)	%
KSOP dividend deduction	(0.6)	%	(0.5)	%	(0.5)	%
Other	0.7	%	0.4	%	0.2	%
Effective Tax Rate	17.5	%	17.8	%	18.2	%

Schedule of Unrecognized Tax Benefits Roll Forward

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

(In thousands)	2023		2022		2021
January 1 Balance	$	69	$	339	$	633
Additions based on tax positions related to the current year	47		—		—
Additions for tax positions of prior years	52		25		10
Reductions due to statute of limitations	(23)		(295)		(304)
December 31 Balance	$	145	$	69	$	339