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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes (In Thousands) Significant components of the provision for income taxes are as follows for the periods presented:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 36,138 |  |  | $ | 39,507 |  |  | $ | 34,629 |
State | 1,376 |  |  | 3,453 |  |  | 895 |
| 37,514 |  |  | 42,960 |  |  | 35,524 |
Deferred |  |  |  |  |
Federal | (1,187) |  |  | 1,630 |  |  | 9,168 |
State | (3,818) |  |  | 650 |  |  | 2,243 |
| (5,005) |  |  | 2,280 |  |  | 11,411 |
| $ | 32,509 |  |  | $ | 45,240 |  |  | $ | 46,935 |
The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Tax at U.S. statutory rate | $ | 37,209 |  |  | $ | 44,375 |  |  | $ | 46,794 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
Tax-exempt interest income | (1,505) |  |  | (1,832) |  |  | (1,669) |
BOLI income | (2,197) |  |  | (1,946) |  |  | (1,547) |
Investment tax credits | (1,901) |  |  | (928) |  |  | (988) |
Amortization of investment in low-income housing tax credits | 1,741 |  |  | 683 |  |  | 817 |
State income tax expense, net of federal benefit | (1,929) |  |  | 3,241 |  |  | 2,479 |
Other items, net | 1,091 |  |  | 1,647 |  |  | 1,049 |
| $ | 32,509 |  |  | $ | 45,240 |  |  | $ | 46,935 |
Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:
| December 31,
| 2023 |  | 2022
Deferred tax assets |  |  |
Allowance for credit losses | $ | 53,432 |  |  | $ | 52,551 |
Loans | 1,631 |  |  | 2,518 |
Deferred compensation | 15,310 |  |  | 14,447 |
Net unrealized losses on securities | 51,211 |  |  | 70,999 |
Impairment of assets | 138 |  |  | 316 |
Tax credits | 4,035 |  |  | — |
Net operating loss carryforwards | 33 |  |  | 497 |
Investments in partnerships | 1,491 |  |  | 1,164 |
Lease liabilities under operating leases | 13,066 |  |  | 14,641 |
Realized losses on securities | 4,892 |  |  | — |
Other | 2,660 |  |  | 3,523 |
Total deferred tax assets | 147,899 |  |  | 160,656 |
Deferred tax liabilities |  |  |
Fixed assets | 11,023 |  |  | 10,342 |
Mortgage servicing rights | 21,282 |  |  | 19,624 |
Junior subordinated debt | 1,708 |  |  | 1,948 |
Intangibles | 2,447 |  |  | 2,702 |
Lease right-of-use asset | 12,399 |  |  | 14,018 |
Other | 3,344 |  |  | 1,614 |
Total deferred tax liabilities | 52,203 |  |  | 50,248 |
Net deferred tax assets | $ | 95,696 |  |  | $ | 110,408 |
The effective tax rate was 18.82% and 21.78% for the year ended December 31, 2023 and 2022, respectively. The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2021 through 2023. The Company and its subsidiaries’ state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2021 through 2023. The Company acquired federal and state net operating losses as part of its previous acquisitions, with varying expiration periods. While the Company has no remaining state net operating losses as of December 31, 2023, the remaining federal net operating losses have an indefinite carryforward period. Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the year ended December 31, 2023. The table below presents the breakout of net operating losses as of the dates presented.
| December 31,
| 2023 |  | 2022
Net Operating Losses |  |  |
Federal | $ | 138 |  |  | $ | 1,101 |
State | — |  |  | 5,666 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below:
| 2023 |  | 2022 |  | 2021
Balance at January 1 | $ | 407 |  |  | $ | 408 |  |  | $ | 402 |
Additions based on positions related to current period | 78 |  |  | 65 |  |  | 62 |
Reductions based on positions related to prior period | — |  |  | — |  |  | — |
Reductions due to lapse of statute of limitations | (86) |  |  | (66) |  |  | (56) |
Balance at December 31 | $ | 399 |  |  | $ | 407 |  |  | $ | 408 |
If ultimately recognized, the Company does not anticipate any material increase in the effective tax rate for 2023 relative to any tax positions taken prior to January 1, 2023. The Company had accrued $26, $17 and $15 for interest and penalties related to unrecognized tax benefits as of December 31, 2023, 2022 and 2021, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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