SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Estimated Useful Lives of Assets

The estimated useful lives of the assets are as follows:

	Years
Buildings	39
Leasehold Improvements	5-20
Furniture and Equipment	3-7

Computation of Earnings Per Common Share

Earnings per common share have been computed based on the following:

	Years Ended December 31,
	2012			2011			2010
	(In thousands, except per share data)
Net income applicable to common stock	$	6,254		$	5,874		$	3,006
Average number of common shares issued		25,763			27,839			29,063
Less: Average unallocated ESOP Shares		(1,254	)		(1,339	)		(1,426	)
Average unallocated equity incentive plan shares		(7	)		(18	)		(42	)
Average number of common shares outstanding used
to calculate basic earnings per common share		24,502			26,482			27,595
Effect of dilutive stock options		18			108			198
Average number of common shares outstanding used
to calculate diluted earnings per common share		24,520			26,590			27,793
Basic earnings per share	$	0.26		$	0.22		$	0.11
Diluted earnings per share	$	0.26		$	0.22		$	0.11
Antidilutive shares (1)		1,666			1,641			1,564

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(1)   Shares outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of the Company’s common stock.

Components of Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity

The components of accumulated other comprehensive income (loss), included in shareholders’ equity are as follows:

	December 31,
	2012			2011
	(In thousands)
Net unrealized gain on securities available for sale	$	20,188		$	16,225
Tax effect		(6,935	)		(5,573	)
Net-of-tax amount		13,253			10,652
Noncredit portion of other-than-temporary impairment losses on securities available for sale		-			(501	)
Tax effect		-			170
Net-of-tax amount		-			(331	)
Unrecognized transition assets pertaining to defined benefit plans		21			32
Unrecognized deferred loss pertaining to defined benefit plans		(3,897	)		(3,978	)
Net accumulated other comprehensive loss pertaining to defined benefit plans		(3,876	)		(3,946	)
Tax effect		1,318			1,341
Net-of-tax amount		(2,558	)		(2,605	)
Net accumulated other comprehensive income	$	10,695		$	7,716

Changes in Accumulated Other Comprehensive Income (Loss)

The following table presents changes in accumulated other comprehensive income (loss) for the years ended December 31, 2012 and 2011 by component:

	Securities			Defined Benefit Plans			Accumulated Other Comprehensive Income
	(In thousands)
Balance at December 31, 2011	$	10,321		$	(2,605	)	$	7,716
Current-period other comprehensive income		2,932			47			2,979
Balance at December 31, 2012	$	13,253		$	(2,558	)	$	10,695
Balance at December 31, 2010	$	(3,774	)	$	(1,742	)	$	(5,516	)
Current-period other comprehensive income		14,095			(863	)		13,232
Balance at December 31, 2011	$	10,321		$	(2,605	)	$	7,716