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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Taxes [Abstract] |
Income Taxes | 11. Income Taxes The significant components of income tax expense attributable to operations are as follows:
|  | Years Ended December 31, |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Current |  |  |  |  |  |  |  |  |
Federal |  | $ | 35,483 |  |  | $ | 36,358 |  |  | $ | 28,475 |
State |  |  | 8,626 |  |  |  | 9,768 |  |  |  | 7,653 |
Total Current |  | $ | 44,109 |  |  | $ | 46,126 |  |  | $ | 36,128 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 507 |  |  | $ | (14,021 | ) |  | $ | (1,379 | )
State |  |  | 357 |  |  |  | (3,406 | ) |  |  | (338 | )
Total Deferred |  | $ | 864 |  |  | $ | (17,427 | ) |  | $ | (1,717 | )
Total income tax expense |  | $ | 44,973 |  |  | $ | 28,699 |  |  | $ | 34,411 |
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) |  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |
Allowance for loan losses |  | $ | 22,479 |  |  | $ | 27,282 |
Lease liability |  |  | 6,744 |  |  |  | 8,141 |
Deferred compensation |  |  | 9,584 |  |  |  | 11,602 |
Postretirement benefit obligation |  |  | 1,286 |  |  |  | 1,511 |
Fair value adjustments from acquisitions |  |  | 199 |  |  |  | 259 |
Loan fees |  |  | 12,936 |  |  |  | 5,400 |
Accrued liabilities |  |  | 1,424 |  |  |  | 1,307 |
Stock-based compensation expense |  |  | 2,679 |  |  |  | 3,213 |
Unrealized losses on securities |  |  | 1,482 |  |  |  | - |
Other |  |  | 4,200 |  |  |  | 3,558 |
Total deferred tax assets |  | $ | 63,013 |  |  | $ | 62,273 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Pension benefits |  | $ | 16,137 |  |  | $ | 14,406 |
Lease right-of-use asset |  |  | 5,681 |  |  |  | 6,567 |
Amortization of intangible assets |  |  | 13,187 |  |  |  | 12,725 |
Premises and equipment, primarily due to accelerated depreciation |  |  | 4,962 |  |  |  | 4,774 |
Unrealized gain on securities |  |  | - |  |  |  | 7,732 |
Other |  |  | 1,008 |  |  |  | 952 |
Total deferred tax liabilities |  | $ | 40,975 |  |  | $ | 47,156 |
Net deferred tax asset at year-end |  | $ | 22,038 |  |  | $ | 15,117 |
Net deferred tax asset at beginning of year |  |  | 15,117 |  |  |  | 2,534 |
Increase in net deferred tax asset |  | $ | 6,921 |  |  | $ | 12,583 |
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, 2021 and 2020. 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) |  | 2021 |  |  | 2020 |  |  | 2019 |
Federal income tax at statutory rate |  | $ | 41,971 |  |  | $ | 27,948 |  |  | $ | 32,641 |
Tax exempt income |  |  | (1,014 | ) |  |  | (981 | ) |  |  | (1,233 | )
Net increase in cash surrender value of life insurance |  |  | (1,230 | ) |  |  | (1,135 | ) |  |  | (927 | )
Federal tax credits |  |  | (1,884 | ) |  |  | (1,705 | ) |  |  | (1,458 | )
State taxes, net of federal tax benefit |  |  | 7,097 |  |  |  | 5,026 |  |  |  | 5,773 |
Stock-based compensation, excess tax benefit |  |  | (323 | ) |  |  | (152 | ) |  |  | (342 | )
Other, net |  |  | 356 |  |  |  | (302 | ) |  |  | (43) |
Income tax expense |  | $ | 44,973 |  |  | $ | 28,699 |  |  | $ | 34,411 |
A reconciliation of the beginning and ending balance of Federal and State gross unrecognized tax benefits (“UTBs”) is as follows:
(In thousands) |  | 2021 |  |  | 2020 |
Balance at January 1 |  | $ | 1,178 |  |  | $ | 779 |
Additions for tax positions of prior years |  |  | 80 |  |  |  | 254 |
Current period tax positions |  |  | 287 |  |  |  | 145 |
Balance at December 31 |  | $ | 1,545 |  |  | $ | 1,178 |
Amount that would affect the effective tax rate if recognized, gross of tax |  | $ | 1,221 |  |  | $ | 931 |
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, 2021, no significant changes to UTBs are projected; however, tax audit examinations are possible, but it is not reasonably possible to estimate when examinations in subsequent years will be completed. The Company recognized an insignificant amount of interest expense related to UTBs in the consolidated statement of income for the year ended December 31, 2021. As of December 31, 2021, the Company is no longer subject to U.S. Federal tax examination by tax authorities for years prior to 2016. The tax years 2015 to 2019 are currently being audited by New York State.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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