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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The current and deferred amounts of income tax expense for 2019, 2018 and 2017 are as follows (dollars in thousands):

		2019				2018				2017
Current:
Federal		$	15,509			$	8,902			$	21,090
State			5,018				954				505
Subtotal			20,527				9,856				21,595
Deferred:
Federal			916				2,455				3,876
State			(812)				(1,529)				(177)
Subtotal			104				926				3,699
Income tax expense		$	20,631			$	10,782			$	25,294

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

On July 1, 2018 New Jersey Governor Phil Murphy signed Assembly Bill 4202 (“the Bill”) into law. The legislation imposes a temporary surtax on corporations earning New Jersey allocated income in excess of $1 million of 2.5% for tax years beginning on or after January 1, 2018 through December 31, 2019, and of 1.5% for tax years beginning on or after January 1, 2020 through December 31, 2021. The legislation also requires combined filing for members of an affiliated group for tax years beginning on or after January 1, 2019, changing New Jersey’s current status as a separate return state, and limits the deductibility of dividends received. These changes are not temporary. Although regulations implementing the legislative changes have not yet been issued, it is possible that the Company will lose the benefit of at least certain of its tax management strategies, and, if so, our total tax expense will likely increase. As a result of the Bill the Company recorded a net tax benefit of $0.6 million primarily due to a re-measurement of deferred tax assets and liabilities. Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory federal tax rate for the following reasons (dollars in thousands):

		2019				2018				2017
Income before income tax expense		$	94,026			$	71,134			$	68,514
Federal statutory rate			21	%			21	%			35
Computed “expected” Federal income tax expense			19,745				14,938				23,980
State tax, net of federal tax benefit			3,436				1,104				213
Impact of the Tax Cuts and Jobs Act			-				(790)				5,623
Impact of “the Bill”			-				(618)				-
Bank owned life insurance			(732)				(650)				(1,113)
Tax-exempt interest and dividends			(2,519)				(1,521)				(2,123)
Tax benefits from stock-based compensation			(27)				(1,100)				(348)
Other, net			728				(581)				(938)
Income tax expense		$	20,631			$	10,782			$	25,294

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability at December 31, 2019 and 2018 are presented in the following table:

		2019				2018
		(dollars in thousands)
Deferred tax assets
Allowance for loan losses		$	11,333			$	10,358
Purchase accounting			4,543				307
Pension actuarial losses			-				2,203
New Jersey net operating loss			3,424				2,796
Deferred compensation			1,440				1,234
Unrealized losses on securities and swaps			1,509				1,620
Deferred loan costs, net of fees			20				19
Accrued rent			-				426
Capital lease			230				232
Nonaccrual interest			69				95
Other			2,240				-
Total deferred tax assets		$	24,808			$	19,290
Deferred tax liabilities
Employee benefit plans		$	(2,131)			$	(2,167)
Pension actuarial gains			(1,062)				-
Depreciation			(1,146)				(512)
Prepaid expenses			(173)				(185)
Market discount accretion			(32)				(414)
Unrealized gains on securities and swaps			-				(366)
Other			-				(198)
Total deferred tax liabilities			(4,544)				(3,842)
Net deferred tax assets		$	20,264			$	15,448

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Name Accounting Standards Codification
-Topic 740
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-Section 50
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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