Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

The components of income tax expense are as follows:

	Years Ended December 31,
	2020			2019			2018
	(In Thousands)
Current:
Federal	$	25,323		$	11,476		$	9,538
State and local		650			210			207
Deferred		(9,781	)		(419	)		881
	$	16,192		$	11,267		$	10,626

Schedule of effective income tax rate reconciliation

The effective tax rates differ from federal statutory rate applied to income before income taxes due to the following:

	Years Ended December 31,
	2020			2019			2018
	(In Thousands)
Tax expense at statutory rate (21%)	$	16,646		$	12,734		$	11,944
Increases (decreases) in taxes from:
State income tax – net of federal tax benefit		513			166			164
Tax exempt interest income, net of TEFRA		(806	)		(729	)		(770	)
Bank owned life insurance		(882	)		(555	)		(255	)
Captive insurance		(445	)		(354	)		(325	)
Other		1,166			5			(132	)
Totals	$	16,192		$	11,267		$	10,626

Schedule of deferred tax assets and liabilities

Significant components of Premier’s deferred federal income tax assets and liabilities are as follows:

	December 31,
	2020		2019
	(In Thousands)
Deferred federal income tax assets:
Allowance for credit losses	$	17,237	$	6,475
Allowance for unfunded commitments		1,123		—
Interest on nonaccrual loans		1,003		344
Postretirement benefit costs		546		613
Deferred compensation		2,057		1,208
Individually evaluated loans		2,483		855
Deferred loan origination fees and costs		—		474
Accrued vacation		10		11
Accrued bonus		1,065		938
Right of use asset		3,731		1,993
Net operating loss carryforward		307		—
Other		2,175		1,173
Total deferred federal income tax assets		31,737		14,084
Deferred federal income tax liabilities:
FHLB stock dividends		—		1,404
Goodwill		4,542		4,956
Mortgage servicing rights		2,762		2,156
Fixed assets		2,230		1,935
Other intangible assets		7,118		647
Loan mark to market		—		5
Deferred loan origination fees and costs		1,294		—
Net unrealized gains on available-for-sale securities		4,009		1,286
Prepaid expenses		762		708
Lease liabilities		3,557		1,876
Other		25		16
Total deferred federal income tax liabilities		26,299		14,989
Net deferred federal income tax asset/ (liability)	$	5,438	$	(905	)