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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Tax Expense

The components of the Company’s provision for income taxes for the years ended December 31, 2019, 2018, and 2017 were, as follows: 

(In thousands)		2019				2018				2017
Current:
Federal tax expense		$	16,576			$	12,634			$	10,092
State tax expense		5,323				4,114				292
Total current tax expense		21,899				16,748				10,384
Deferred:
Federal tax expense		908				8,443				29,824
State tax (benefit)/expense		(344		)		3,770				1,805
Total deferred tax expense (1)		564				12,213				31,629
Change in valuation allowance		—				—				75
Income tax expense from continuing operations		$	22,463			$	28,961			$	42,088
Income tax (benefit)/expense from discontinued operations		(1,468		)		(1,313		)		2,414
Total		$	20,995			$	27,648			$	44,502

(1)

2017 deferred tax expense of $31.6 million includes an $18.1 million charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017.

Schedule of Reconciliation of the Statutory Federal Income Tax Rate to Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2019, 2018, and 2017: 

		2019							2018							2017
(In thousands, except rates)		Amount				Rate			Amount				Rate			Amount				Rate
Statutory tax rate		$	26,037			21.0	%		$	29,018			21.0	%		$	31,921			35.0	%
Increase (decrease) resulting from:
State taxes, net of federal tax benefit		3,641				2.9			7,081				5.1			1,699				1.9
Tax exempt income - investments, net		(3,527		)		(2.8	)		(3,620		)		(2.6	)		(5,395		)		(5.9	)
Bank-owned life insurance		(1,305		)		(1.1	)		(1,337		)		(1.0	)		(1,556		)		(1.7	)
Non-deductible merger costs		122				0.1			181				0.1			368				0.4
Tax credits, net of basis reduction		(3,531		)		(2.8	)		(3,574		)		(2.6	)		(4,656		)		(5.1	)
Change in valuation allowance		—				—			—				—			75				0.1
Impact of federal tax reform enactment		—				—			—				—			18,721				20.5
Other, net		1,026				0.8			1,212				0.9			911				1.0
Effective tax rate		$	22,463			18.1	%		$	28,961			20.9	%		$	42,088			46.2	%

Schedule of Components of Deferred Tax Assets and Liabilities

As of December 31, 2019 and 2018, significant components of the Company’s deferred tax assets and liabilities were, as follows:

(In thousands)		2019				2018
Deferred tax assets:
Allowance for loan losses		$	17,446			$	16,754
Unrealized capital loss on tax credit investments		6,195				6,045
Net unrealized loss on securities available for sale and pension in OCI		—				4,554
Employee benefit plans		10,565				5,161
Purchase accounting adjustments		39,359				27,249
Net operating loss carryforwards		951				1,162
Lease liability		22,497				—
Premises and equipment		739				—
Other		1,088				2,457
Deferred tax assets, net before valuation allowances		98,840				63,382
Valuation allowance		(200		)		(200		)
Deferred tax assets, net of valuation allowances		$	98,640			$	63,182
Deferred tax liabilities:
Net unrealized gain on securities available for sale and pension in OCI		$	(4,244	)		$	—
Premises and equipment		—				(1,654		)
Loan servicing rights		(4,669		)		(3,944		)
Deferred loan fees		(1,667		)		(3,310		)
Intangible amortization		(18,557		)		(13,940		)
Unamortized tax credit reserve		(1,142		)		(1,170		)
Right-of-use asset		(20,614		)		—
Deferred tax liabilities		$	(50,893	)		$	(24,018	)
Deferred tax assets, net		$	47,747			$	39,164
Deferred tax liabilities from discontinued operations		$	(3,418	)		$	(3,270	)
Deferred tax assets, net from continuing operations		$	51,165			$	42,434

Schedule of Components of the Valuation Allowance on Deferred Tax Asset

The components of the Company’s valuation allowance on its deferred tax asset, net as of December 31, 2019 and 2018 were, as follows: 

(in thousands)		2019				2018
State tax basis difference, net of Federal tax benefit		$	(200	)		$	(200	)
Valuation allowances		$	(200	)		$	(200	)

Schedule of Changes in Unrecognized Tax Benefits

The following table presents changes in unrecognized tax benefits for the years ended December 31, 2019, 2018, and 2017:

(In thousands)		2019				2018				2017
Unrecognized tax benefits at January 1		$	467			$	304			$	460
Increase in gross amounts of tax positions related to prior years		26				533				—
Decrease in gross amounts of tax positions related to prior years		—				(370		)		(156		)
Decrease due to settlement with taxing authority		(185		)		—				—
Increase in gross amounts of tax positions related to current year		—				—				—
Decrease due to lapse in statute of limitations		(70		)		—				—
Unrecognized tax benefits at December 31		$	238			$	467			$	304

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