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Income Taxes
 12 Months Ended
Dec. 31, 2024
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)202420232022
Current:  
Federal$11,047 $7,990 $12,334 
State1,111 1,156 1,489 
Total12,158 9,146 13,823 
Deferred:  
Federal291 1,277 1,743 
State7 30 42 
Total298 1,307 1,785 
Income tax expense$12,456 $10,453 $15,608 

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)202420232022
Computed tax expense$13,747 $11,306 $16,180 
Increase (reduction) in income taxes resulting from:
Tax credit benefits
(1,699)(831)(846)
State taxes, net of federal benefit1,099 937 1,209 
Income from life insurance(589)(493)(399)
Tax exempt income(451)(647)(732)
Merger and acquisition costs
232 — — 
Share-based awards98 69 (100)
Other19 112 296 
Income tax expense$12,456 $10,453 $15,608 
Income before income tax expense$65,460 $53,836 $77,047 
Effective tax rate19.0 %19.4 %20.3 %
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,
20242023
(In thousands)AssetLiabilityAssetLiability
Net unrealized losses on AFS debt securities$28,488 $— $29,418 $— 
Allowance for credit losses 8,285 — 8,447 — 
Net operating loss and tax credit carryforward6,255 — 7,084 — 
Pension and other benefits4,319 — 4,656 — 
Deferred compensation and benefits1,161 — 1,033 — 
Deferred loan origination fees— (3,152)— (3,235)
Depreciation— (2,352)— (2,359)
Net unrealized gains on derivative instruments
— (2,454)— (1,670)
Other— (513)— (1,148)
Gross deferred tax assets (liabilities)$48,508 (8,471)$50,638 (8,412)
Valuation allowance on deferred tax assets— — 
Net deferred tax assets$40,037 $42,226 

At December 31, 2024 and 2023, the Company had $28.9 million and $32.8 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, 2024 and 2023 determined that no valuation allowance was necessary.

As of December 31, 2024, the Company's federal and state income tax returns for the years ended December 31, 2023, 2022 and 2021 were open to audit by federal and state authorities.

Renewable Energy Credits

As of December 31, 2024 and 2023, the Company had $315,000 and $509,000, respectively, of qualifying renewable energy tax credit investments that were unamortized and were included in other assets on the consolidated statements of condition.

The following table presents the activity recorded in income tax expense on the consolidated statements of income for the investments the Company accounts for under the proportional amortization method:
For the Year Ended
December 31,
(In thousands)20242023
Proportional amortization
$5,908 $— 
Income tax credits and other income tax benefits(1)
6,525 — 
Net income tax benefit
$617 $— 
(1)     Other income tax benefits are a result of tax deductible expenses generated by the renewable energy tax credit investments and are recognized in the consolidated statements of cash flows in other assets within the operating activities section.