|
INCOME TAXES (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| 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) |
|
2014 |
|
|
2013 |
|
|
2012 |
|
| Current: |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
$ |
(51 |
) |
|
$ |
(75 |
) |
|
$ |
1,189 |
|
| State |
|
|
(2,916 |
) |
|
|
195 |
|
|
|
280 |
|
| |
|
|
(2,967 |
) |
|
|
120 |
|
|
|
1,469 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred: |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
|
4,270 |
|
|
|
1,650 |
|
|
|
(1,260 |
) |
| State |
|
|
249 |
|
|
|
99 |
|
|
|
(1,597 |
) |
| Valuation Allowance |
|
|
102 |
|
|
|
56 |
|
|
|
52 |
|
| |
|
|
4,621 |
|
|
|
1,805 |
|
|
|
(2,805 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total: |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
|
4,219 |
|
|
|
1,575 |
|
|
|
(71 |
) |
| State |
|
|
(2,667 |
) |
|
|
294 |
|
|
|
(1,317 |
) |
| Valuation Allowance |
|
|
102 |
|
|
|
56 |
|
|
|
52 |
|
| Total |
|
$ |
1,654 |
|
|
$ |
1,925 |
|
|
$ |
(1,336 |
) |
|
| 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) |
|
2014 |
|
|
2013 |
|
|
2012 |
|
| Tax Expense at Federal Statutory Rate |
|
$ |
3,820 |
|
|
$ |
2,790 |
|
|
$ |
(430 |
) |
| Increases (Decreases) Resulting From: |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Exempt Interest Income |
|
|
(327 |
) |
|
|
(385 |
) |
|
|
(402 |
) |
| Change in Reserve for Uncertain Tax Positions |
|
|
(2,902 |
) |
|
|
(777 |
) |
|
|
(347 |
) |
| State Taxes, Net of Federal Benefit |
|
|
892 |
|
|
|
191 |
|
|
|
(856 |
) |
| Other |
|
|
69 |
|
|
|
50 |
|
|
|
199 |
|
| Change in Valuation Allowance |
|
|
102 |
|
|
|
56 |
|
|
|
52 |
|
| Increase Deferred Tax Liability for Equity Investment |
|
|
|
|
|
|
|
|
|
|
448 |
|
| Actual Tax Expense |
|
$ |
1,654 |
|
|
$ |
1,925 |
|
|
$ |
(1,336 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of deferred income tax liabilities and assets |
The net deferred tax asset and the temporary differences comprising
that balance at December 31, 2014 and 2013 are as follows:
| (Dollars in Thousands) |
|
2014 |
|
|
2013 |
|
| Deferred Tax Assets Attributable to: |
|
|
|
|
|
|
|
|
| Allowance for Loan Losses |
|
$ |
6,767 |
|
|
$ |
8,910 |
|
| Accrued Pension/SERP |
|
|
13,547 |
|
|
|
5,284 |
|
| State Net Operating Loss and Tax Credit Carry-Forwards |
|
|
5,012 |
|
|
|
4,906 |
|
| Other Real Estate Owned |
|
|
8,229 |
|
|
|
9,459 |
|
| Other |
|
|
4,226 |
|
|
|
5,304 |
|
| Total Deferred Tax Assets |
|
$ |
37,781 |
|
|
$ |
33,863 |
|
| |
|
|
|
|
|
|
|
|
| Deferred Tax Liabilities Attributable to: |
|
|
|
|
|
|
|
|
| Depreciation on Premises and Equipment |
|
$ |
6,247 |
|
|
$ |
6,322 |
|
| Deferred Loan Fees and Costs |
|
|
2,490 |
|
|
|
2,446 |
|
| Intangible Assets |
|
|
3,719 |
|
|
|
3,419 |
|
| Other |
|
|
612 |
|
|
|
526 |
|
| Total Deferred Tax Liabilities |
|
|
13,068 |
|
|
|
12,713 |
|
| Valuation Allowance |
|
|
1,328 |
|
|
|
1,226 |
|
| Net Deferred Tax Asset |
|
$ |
23,385 |
|
|
$ |
19,924 |
|
| Schedule of beginning and ending unrecognized tax benefit |
A reconciliation of the beginning and ending unrecognized tax benefit
is as follows:
| (Dollars in Thousands) |
|
2014 |
|
|
2013 |
|
|
2012 |
|
| Balance at January 1, |
|
$ |
3,228 |
|
|
$ |
4,209 |
|
|
$ |
4,577 |
|
| Additions Based on Tax Positions Related to Current Year |
|
|
|
|
|
|
|
|
|
|
508 |
|
| Decrease Due to Lapse in Statue of Limitations |
|
|
|
|
|
|
(981 |
) |
|
|
(876 |
) |
| Decrease Due to Settlements With Taxing Authorities |
|
|
(3,228 |
) |
|
|
|
|
|
|
|
|
| Balance at December 31 |
|
$ |
|
|
|
$ |
3,228 |
|
|
$ |
4,209 |
|
|