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Income Taxes
 12 Months Ended
Dec. 31, 2024
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)
  
2024
    
2023
    
2022
  
Current:
                  
Federal
  
$
23,049
    
$
22,829
    
$
51,077
  
State
    
7,039
      
5,890
      
12,934
  
Total current
  
$
30,088
    
$
28,719
    
$
64,011
  
Deferred:
                        
Federal
  
$
8,306
    
$
4,593
    
$
(15,862
)
State
    
423
      
1,365
      
(3,988
)
Total deferred
  
$
8,729
    
$
5,958
    
$
(19,850
)
Total income tax expense
  
$
38,817
    
$
34,677
    
$
44,161
  

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)
  
2024
    
2023
  
Deferred tax assets:
            
Allowance for loan losses
  
$
29,229
    
$
28,039
  
Lease liability
    
7,646
      
6,917
  
Deferred compensation
    
10,581
      
9,915
  
Fair value adjustments on acquisitions
     15,958       18,306  
Loan fees
    
23,660
      
30,778
  
Stock-based compensation expense
    
3,375
      
3,006
  
Unrealized losses on securities
     41,346       45,446  
Other
    
6,382
      
9,362
  
Total deferred tax assets
  
$
138,177
    
$
151,769
  
Deferred tax liabilities:
                
Pension benefits
  
$
16,705
    
$
14,742
  
Lease right-of-use asset
    
7,195
      
6,551
  
Amortization of intangible assets
    
22,476
      
22,850
  
Premises and equipment, primarily due to accelerated depreciation
    
1,510
      
2,746
  
Other
    
2,072
      
1,669
  
Total deferred tax liabilities
  
$
49,958
    
$
48,558
  
Net deferred tax asset at year-end
  
$
88,219
    
$
103,211
  
Net deferred tax asset at beginning of year
    
103,211
      
97,320
  
(Decrease) Increase in net deferred tax asset
  
$
(14,992
)
  
$
5,891
  

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, 2024 and 2023.

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)
  
2024
    
2023
    
2022
  
Federal income tax at statutory rate
  
$
37,686
    
$
32,226
    
$
41,193
  
Tax exempt income
    
(1,783
)
    
(1,442
)
    
(984
)
Net increase in cash surrender value of life insurance
    
(1,866
)
    
(1,367
)
    
(1,215
)
Federal tax credits
    
(1,171
)
    
(1,297
)
    
(1,398
)
State taxes, net of federal tax benefit
    
6,008
      
5,732
      
7,067
  
Other, net
    
(57
)
    
825
      
(502
)
Income tax expense
  
$
38,817
    
$
34,677
    
$
44,161
  

A reconciliation of the beginning and ending balance of Federal and State gross unrecognized tax benefits (“UTBs”) is as follows:

(In thousands)
  
2024
    
2023
  
Balance at January 1
  
$
2,879
    
$
1,942
  
Additions for tax positions of prior years
    
57
      
647
  
Reduction for tax positions of prior years
     (265 )     (104 )
Current period tax positions
    
243
      
394
  
Balance at December 31
  
$
2,914
    
$
2,879
  
Amount that would affect the effective tax rate if recognized, gross of tax
  
$
2,302
    
$
2,274
  

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, 2024, 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 $0.6 million and $0.5 million of interest expense related to UTBs in the consolidated statements of income for the years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company is no longer subject to U.S. Federal tax examination by tax authorities for years prior to 2021. The tax years 2017 to 2019 are currently being audited by New York State.