XML 29 R20.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Taxes [Abstract] |
Income Taxes | 12. Income Taxes The significant components of income tax expense attributable to operations are as follows:
|  | Years ended December 31, |
(In thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 28,475 |  |  | $ | 15,762 |  |  | $ | 35,839 |
State |  |  | 7,653 |  |  |  | 5,977 |  |  |  | 6,599 |
Total Current |  | $ | 36,128 |  |  | $ | 21,739 |  |  | $ | 42,438 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (1,379 | ) |  | $ | 2,281 |  |  | $ | 3,850 |
State |  |  | (338 | ) |  |  | 416 |  |  |  | (278 | )
Total Deferred |  | $ | (1,717 | ) |  | $ | 2,697 |  |  | $ | 3,572 |
Total income tax expense |  | $ | 34,411 |  |  | $ | 24,436 |  |  | $ | 46,010 |
On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 35% to 21% and establishing other tax laws affecting years subsequent to 2017. ASC 740, Income Taxes, requires a company to record the effects of a tax law change in the period of enactment, however shortly after the enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin 118 ("SAB 118"), which allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The one year remeasurement period allowed under SAB 118 ended December 31, 2018 and the Company did not make any significant changes to the provisional amounts recorded. In connection with the analysis of the impact of the Tax Act, the Company recorded a $4.4 million non-cash adjustment in the year ended December 31, 2017 for remeasurement of deferred tax assets and liabilities for the corporate rate reduction. During 2018, the Company recorded a $5.5 million benefit primarily related to changes in accounting methods approved by the Internal Revenue Services in the fourth quarter of 2018. 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) |  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |
Allowance for loan losses |  | $ | 18,535 |  |  | $ | 18,042 |
Lease liability |  |  | 9,331 |  |  |  | - |
Deferred compensation |  |  | 8,336 |  |  |  | 7,340 |
Postretirement benefit obligation |  |  | 1,631 |  |  |  | 1,962 |
Fair value adjustments from acquisitions |  |  | 422 |  |  |  | 663 |
Unrealized losses on securities |  |  | - |  |  |  | 4,893 |
Accrued liabilities |  |  | 1,176 |  |  |  | 913 |
Stock-based compensation expense |  |  | 3,032 |  |  |  | 2,821 |
Other |  |  | 1,498 |  |  |  | 1,008 |
Total deferred tax assets |  | $ | 43,961 |  |  | $ | 37,642 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Pension benefits |  | $ | 13,014 |  |  | $ | 10,782 |
Lease right-of-use asset |  |  | 9,259 |  |  |  | - |
Amortization of intangible assets |  |  | 12,202 |  |  |  | 11,525 |
Premises and equipment, primarily due to accelerated depreciation |  |  | 5,137 |  |  |  | 4,973 |
Unrealized gain on securities |  |  | 1,770 |  |  |  | - |
Other |  |  | 45 |  |  |  | 1,567 |
Total deferred tax liabilities |  | $ | 41,427 |  |  | $ | 28,847 |
Net deferred tax asset at year-end |  | $ | 2,534 |  |  | $ | 8,795 |
Net deferred tax asset at beginning of year |  |  | 8,795 |  |  |  | 7,293 |
(Decrease) increase in net deferred tax asset |  | $ | (6,261 | ) |  | $ | 1,502 |
Realization of deferred tax assets is dependent upon the generation of future taxable income. A valuation allowance is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Based on available evidence, gross deferred tax assets will ultimately be realized and a valuation allowance was not deemed necessary at December 31, 2019 and 2018. 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) |  | 2019 |  |  | 2018 |  |  | 2017 |
Federal income tax at statutory rate |  | $ | 32,641 |  |  | $ | 28,770 |  |  | $ | 44,857 |
Tax exempt income |  |  | (1,233 | ) |  |  | (1,456 | ) |  |  | (2,303 | )
Net increase in cash surrender value of life insurance |  |  | (927 | ) |  |  | (973 | ) |  |  | (1,780 | )
Federal tax credit |  |  | (1,458 | ) |  |  | (1,499 | ) |  |  | (1,343 | )
State taxes, net of federal tax benefit |  |  | 5,773 |  |  |  | 5,051 |  |  |  | 4,107 |
Federal tax reform (Tax Act) |  |  | - |  |  |  | - |  |  |  | 4,407 |
Accounting method changes - tax rate change impact |  |  | - |  |  |  | (5,326 | ) |  |  | - |
Stock-based compensation, excess tax benefit |  |  | (342 | ) |  |  | (456 | ) |  |  | (1,619 | )
Other, net |  |  | (43 | ) |  |  | 325 |  |  |  | (316 | )
Income tax expense |  | $ | 34,411 |  |  | $ | 24,436 |  |  | $ | 46,010 |
A reconciliation of the beginning and ending balance of Federal and State gross unrecognized tax benefits ("UTBs") is as follows:
(In thousands) |  | 2019 |  |  | 2018 |
Balance at January 1 |  | $ | 641 |  |  | $ | 665 |
Additions for tax positions of prior years |  |  | 26 |  |  |  | 27 |
Reduction for tax positions of prior years |  |  | - |  |  |  | (159 | )
Current period tax positions |  |  | 112 |  |  |  | 108 |
Balance at December 31 |  | $ | 779 |  |  | $ | 641 |
Amount that would affect the effective tax rate if recognized, gross of tax |  | $ | 615 |  |  | $ | 506 |
The Company recognizes interest and penalties on the income tax expense line in the accompanying consolidated statements of income. The Company monitors changes in tax statutes and regulations to determine if significant changes will occur over the next 12 months. As of December 31, 2019, no significant changes to UTBs are projected; however, tax audit examinations are possible. The Company recognized an insignificant amount of interest expense related to UTBs in the consolidated statement of income for the year ended December 31, 2019. During the year ended December 31, 2019, the Company recognized an insignificant benefit related to the resolution of state income tax positions. The Company is no longer subject to U.S. Federal tax examination by tax authorities for years prior to 2016 and New York State for years prior to 2014. The 2014, 2015 and 2016 tax years are currently being audited by New York State.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration