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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The current and deferred components of income tax expense on the consolidated statements of income were as follows:
|  | For the Year Ended December 31,
(In thousands) |  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
Federal |  | $ | 16,555 |  |  | $ | 15,197 |  |  | $ | 11,876 |
State |  | 1,709 |  |  | 1,474 |  |  | 1,241 |
Total |  | 18,264 |  |  | 16,671 |  |  | 13,117 |
Deferred: |  |  |  |  |  |
Federal |  | (622) |  |  | (1,720) |  |  | 1,230 |
State |  | (15) |  |  | (41) |  |  | 29 |
Total |  | (637) |  |  | (1,761) |  |  | 1,259 |
Income tax expense |  | $ | 17,627 |  |  | $ | 14,910 |  |  | $ | 14,376 |
The income tax expense differs from the amount computed by applying the statutory federal income tax rate of 21.0% as a result of the following:
|  | For the Year Ended December 31,
(Dollars in thousands) |  | 2021 |  | 2020 |  | 2019
Computed tax expense |  | $ | 18,195 |  |  | $ | 15,623 |  |  | $ | 15,032 |
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |
State taxes, net of federal benefit |  | 1,338 |  |  | 1,132 |  |  | 1,003 |
Tax exempt income |  | (782) |  |  | (894) |  |  | (738) |
Income from life insurance |  | (496) |  |  | (532) |  |  | (509) |
Low income housing credits |  | (591) |  |  | (500) |  |  | (430) |
Share-based awards |  | (103) |  |  | 33 |  |  | (60) |
Other |  | 66 |  |  | 48 |  |  | 78 |
Income tax expense |  | $ | 17,627 |  |  | $ | 14,910 |  |  | $ | 14,376 |
Income before income tax expense |  | $ | 86,641 |  |  | $ | 74,396 |  |  | $ | 71,579 |
Effective tax rate |  | 20.3 | % |  | 20.0 | % |  | 20.1 | %
Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of the dates indicated:
|  | December 31,
|  | 2021 |  | 2020
(In thousands) |  | Asset |  | Liability |  | Asset |  | Liability
Net operating loss and tax credit carryforward |  | $ | 8,741 |  |  | $ | — |  |  | $ | 9,593 |  |  | $ | — |
Allowance for loan losses |  | 7,837 |  |  | — |  |  | 8,693 |  |  | — |
Pension and other benefits |  | 5,027 |  |  | — |  |  | 4,878 |  |  | — |
Net unrealized losses on derivative instruments |  | 528 |  |  | — |  |  | 1,267 |  |  | — |
Deferred compensation and benefits |  | 1,002 |  |  | — |  |  | 961 |  |  | — |
Net unrealized losses (gains) on AFS debt securities |  | 321 |  |  | — |  |  | — |  |  | (8,027) |
Depreciation |  | — |  |  | (2,382) |  |  | — |  |  | (3,204) |
Deferred loan origination fees |  | — |  |  | (2,038) |  |  | — |  |  | (2,111) |
Other |  | 174 |  |  |  |  |  |  | (94) |
Gross deferred tax assets (liabilities) |  | $ | 23,630 |  |  | $ | (4,420) |  |  | $ | 25,392 |  |  | $ | (13,436) |
Valuation allowance on deferred tax assets |  |  |  | — |  |  |  |  | — |
Net deferred tax assets |  |  |  | $ | 19,210 |  |  |  |  | $ | 11,956 |
At December 31, 2021 and 2020, the Company had $40.5 million and $44.4 million, respectively, in unused federal net operating losses that were acquired in 2015. Due to Internal Revenue Code Section 382(g) limitations, the Company's use of the federal net operating losses acquired is limited to $3.9 million annually, which was determined using the applicable federal rate and the fair value of consideration paid for the acquisition at the acquisition date. The acquired federal net operating losses will expire between 2030 and 2034. The Company expects that it will be able to fully utilize the acquired allowable federal net operating losses prior to expiration, as the Company has a history of generating taxable income well in excess of the limitation. The Company continuously monitors and assesses the need for a valuation allowance on its deferred tax assets and, at December 31, 2021 and 2020 determined that no valuation allowance was necessary. As of December 31, 2021, the Company's federal and state income tax returns for the years ended December 31, 2020, 2019 and 2018 were open to audit by federal and state authorities.

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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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