INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of income tax expense

The income tax expense included in the consolidated financial statements for the years ended December 31 is allocated as follows:

(In thousands)	2018			2017		2016
Federal:
Current (benefit)/expense	$	(7,046	)	$	1,559	$	13,207
Deferred expense		16,908			13,922		486
State:
Current expense		3,554			2,133		2,105
Deferred expense		134			196		466
Total income tax expense	$	13,550		$	17,810	$	16,264

Schedule of income tax reconciliation

Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21 percent for 2018 and 35 percent for both 2017 and 2016, respectively, to income before taxes as a result of the following:

(In thousands)	2018			2017			2016
Computed “expected” tax expense	$	12,121		$	19,008		$	14,959
(Decrease)/increase in taxes resulting from:
Tax-exempt income		(402	)		(584	)		(496	)
State income taxes		2,942			1,514			1,671
Bank owned life insurance income		(290	)		(475	)		(492	)
Life insurance expense		148			479			297
Gain on death benefit		(630	)		—			—
Interest disallowance		115			124			95
Meals and entertainment expense		25			76			77
Stock-based compensation		(481	)		(982	)		15
Tax reform impact		—			(1,648	)		—
Other		2			298			138
Total income tax expense	$	13,550		$	17,810		$	16,264

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows:

(In thousands)	2018			2017
Deferred tax assets:
Allowance for loan losses	$	10,537		$	9,972
Tax net operating loss carryforward		7,046			—
Lease adjustment		—			49
Post-retirement benefits		—			297
Organization costs		13			14
Unrealized loss on securities available for sale		969			714
Unrealized loss on equity security		79			—
Stock plan		1,534			118
Nonaccrual interest		31			31
Accrued compensation		189			900
Capital leases		1,051			774
Total gross deferred tax assets	$	21,449		$	12,869
Deferred tax liabilities:
Lease financing	$	33,191		$	10,091
Cash flow hedge		265			392
Deferred loan origination costs and fees		1,214			1,072
Deferred income		2,693			729
Investment securities, principally due to the accretion of bond discount		—			13
Other		115			20
Total gross deferred tax liabilities		37,478			12,317
Net deferred tax (liability)/asset	$	(16,029	)	$	552