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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Taxes

The components of the Company’s provision for income taxes for the years ended December 31, 2022, 2021, and 2020 were, as follows: 

(In thousands)						2022						2021						2020
Current:
Federal tax expense/(benefit)						$	17,915					$	17,340					$	(19,889)
State tax expense/(benefit)						6,831						7,580						(3,976)
Total current tax expense/(benefit) (1)						24,746						24,920						(23,865)
Deferred:
Federal tax expense/(benefit)						(2,274)						5,125						2,048
State tax expense/(benefit)						(1,187)						112						1,964
Total deferred tax expense/(benefit)						(3,461)						5,237						4,012
Change in valuation allowance						—						200						—
Income tax expense/(benefit) from continuing operations						$	21,285					$	30,357					$	(19,853)
Income tax (benefit) from discontinued operations						—						—						(7,013)
Total						$	21,285					$	30,357					$	(26,866)

(1)    On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. The CARES Act includes several provisions that temporarily modify the corporate net operating loss (“NOL”) carryback rules for federal income tax purposes. Specifically, the CARES Act allows a five-year carryback of any NOL generated in a taxable year beginning after December 31, 2017, and before January 1, 2021. The Company recorded a $6 million federal income tax benefit in 2020, and an additional $500 thousand benefit in 2021 resulting from the carryback of its 2020 NOL to recover federal income taxes paid in 2015 through 2018 (at a 35% federal income tax rate for years 2015 through 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, 2022, 2021, and 2020: 

						2022												2021												2020
(In thousands, except rates)						Amount						Rate						Amount						Rate						Amount						Rate
Statutory tax rate						$	23,902					21.0		%				$	31,294					21.0		%				$	(111,936)					21.0		%
Increase (decrease) resulting from:
State taxes, net of federal tax benefit						4,459						3.9						6,077						4.1						(1,589)						0.3
Tax exempt income - investments, net						(3,515)						(3.1)						(3,475)						(2.3)						(3,184)						0.6
Bank-owned life insurance						(1,258)						(1.1)						(1,348)						(0.9)						(1,283)						0.3
Goodwill impairment						—												—						—						103,912						(19.5)
Tax credits, net of basis reduction						(2,129)						(1.9)						(2,881)						(1.9)						(1,812)						0.3
Change in valuation allowance						—						—						200						0.1						—						—
Tax rate benefit on net operating loss carryback						—						—						(493)						(0.3)						(6,040)						1.1
Other, net						(174)						(0.1)						983						0.6						2,079						(0.4)
Effective tax rate						$	21,285					18.7		%				$	30,357					20.4		%				$	(19,853)					3.7		%

Schedule of Components of Deferred Tax Assets and Liabilities

As of December 31, 2022 and 2021, significant components of the Company’s deferred tax assets and liabilities were, as follows:

(In thousands)						2022						2021
Deferred tax assets:
Allowance for credit losses						$	28,312					$	30,441
Unrealized capital loss on tax credit investments						1,603						1,451
Net unrealized loss on securities available for sale, swaps, and pension in OCI						63,335						1,085
Employee benefit plans						11,659						8,435
Purchase accounting adjustments						4,342						4,829
Net operating loss carryforwards						503						1,139
Deferred loan fees						4,049						2,449
Lease liability						14,148						14,940
Premises and equipment						2,630						1,850
Nonaccrual interest						1,069						1,722
Intangible amortization						659						—
Other						1,778						1,845
Deferred tax assets, net before valuation allowances						134,087						70,186
Valuation allowance						(400)						(400)
Deferred tax assets, net of valuation allowances						$	133,687					$	69,786
Deferred tax liabilities:
Loan servicing rights						$	(1,212)					$	(1,488)
Intangible amortization						—						(545)
Unamortized tax credit reserve						(1,687)						(1,075)
Right-of-use asset						(12,457)						(14,058)
Deferred tax liabilities						$	(15,356)					$	(17,166)
Deferred tax assets, net						$	118,331					$	52,620

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, 2022 and 2021 were, as follows: 

(in thousands)						2022						2021
State valuation allowances						$	(400)					$	(400)

Schedule of Changes in Unrecognized Tax Benefits

The following table presents changes in unrecognized tax benefits for the years ended December 31, 2022, 2021, and 2020:

(In thousands)						2022						2021						2020
Unrecognized tax benefits at January 1						$	1,025					$	516					$	238
Increase in gross amounts of tax positions related to prior years						17						509						309
Decrease in gross amounts of tax positions related to prior years						—						—						—
Decrease due to settlement with taxing authority						—						—						—
Decrease due to lapse in statute of limitations						—						—						(31)
Unrecognized tax benefits at December 31						$	1,042					$	1,025					$	516

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