Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.3.1.900
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2015
Income Taxes Tables  
Schedule of provision for income taxes

The provision for income taxes reflected in the statements of comprehensive income is comprised of the following components:

 

(Dollars in Thousands)   2015     2014     2013  
Current:                        
Federal   $ 497     $ (51 )   $ (75 )
State     115       (2,916 )     195  
      612       (2,967 )     120  
Deferred:                        
Federal     3,258       4,270       1,650  
State     475       249       99  
Valuation Allowance     114       102       56  
      3,847       4,621       1,805  
Total:                        
Federal     3,755       4,219       1,575  
State     590       (2,667 )     294  
Valuation Allowance     114       102       56  
Total   $ 4,459     $ 1,654     $ 1,925
Schedule of effective income tax rate reconciliation

Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of 35% to pre-tax income as a result of the following:

 

(Dollars in Thousands)   2015     2014     2013  
Tax Expense at Federal Statutory Rate   $ 4,751     $ 3,820     $ 2,790  
Increases (Decreases) Resulting From:                        
Tax-Exempt Interest Income     (395 )     (327 )     (385 )
Change in Reserve for Uncertain Tax Positions     —       (2,902 )     (777 )
State Taxes, Net of Federal Benefit     390       892       191  
Other     562       69       50  
Change in Valuation Allowance     114       102       56  
Tax-Exempt Cash Surrender Value Life Insurance Benefit     (303 )     —       —  
Excess Death Benefit Payment     (660 )     —       —  
Actual Tax Expense   $ 4,459     $ 1,654     $ 1,925
Schedule of deferred income tax liabilities and assets

Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting purposes and for income tax return purposes.  These assets and liabilities are measured using the enacted tax rates and laws that are currently in effect.  The net deferred tax asset and the temporary differences comprising that balance at December 31, 2015 and 2014 are as follows:

 

(Dollars in Thousands)   2015     2014  
Deferred Tax Assets Attributable to:                
Allowance for Loan Losses   $ 5,383     $ 6,767  
Accrued Pension/SERP     13,901       13,547  
State Net Operating Loss and Tax Credit Carry-Forwards     5,061       5,012  
Other Real Estate Owned     5,012       8,229  
Federal Net Operating Loss and Tax Credit Carry-Forwards     1,241       574  
Other     4,351       3,652  
Total Deferred Tax Assets   $ 34,949     $ 37,781  
                 
Deferred Tax Liabilities Attributable to:                
Depreciation on Premises and Equipment   $ 5,982     $ 6,247  
Deferred Loan Fees and Costs     2,883       2,490  
Intangible Assets     4,019       3,719  
Other     687       612  
Total Deferred Tax Liabilities     13,571       13,068  
Valuation Allowance     1,442       1,328  
Net Deferred Tax Asset   $ 19,936     $ 23,385  
Schedule of beginning and ending unrecognized tax benefit

A reconciliation of the beginning and ending unrecognized tax benefit is as follows:

 

(Dollars in Thousands)   2015     2014     2013  
Balance at January 1,   $ —     $ 3,228     $ 4,209  
Additions Based on Tax Positions Related to Current Year     —       —       —  
Decrease Due to Lapse in Statue of Limitations     —       —       (981 )
Decrease Due to Settlements With Taxing Authorities     —       (3,228 )     —  
Balance at December 31   $ —     $ —     $ 3,228