Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

	For the Years Ended December 31,
(In thousands)	2013		2012		2011
Current:
Federal	$	6,729	$	6,195	$	5,372
State		448		718		980
Deferred:
Federal		39		933		1,983
State		18		41		162
Total income tax expense	$	7,234	$	7,887	$	8,497

Schedule of Reconciliation of Expected Income Tax Expense (Benefit)

A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 35% for each of 2013, 2012 and 2011 to income before income tax expense, to reported income tax expense is as follows:

	For the Years Ended December 31,
(In thousands)	2013			2012			2011
Expected income tax expense	$	10,756		$	10,917		$	11,027
(Reductions) increases resulting from:
Tax-exempt income		(3,297	)		(3,633	)		(3,760	)
State taxes, net of federal benefit		303			493			742
Other, net		(528	)		110			488
Total income tax expense	$	7,234		$	7,887		$	8,497

Schedule of Deferred Assets and Liabilities

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

	December 31,
(In thousands)	2013			2012
Deferred tax assets:
Allowance for loan losses	$	4,368		$	4,599
ASC 715 pension funding liability		5,444			11,744
Net operating loss carryforward¹		298			341
Stock compensation		337			139
Supplemental executive retirement plan accrual		1,130			829
Other		569			488
Total deferred tax assets	$	12,146		$	18,140
Deferred tax liabilities:
Premises and equipment		(1,767	)		(863	)
Pension		(6,233	)		(6,081	)
Intangible/assets		(996	)		(867	)
Unrealized gain on investment in securities available-for-sale		(2,086	)		(6,947	)
Other		(353	)		(298	)
Total deferred tax liabilities	$	(11,435	)	$	(15,056	)
Net deferred tax assets	$	711		$	3,084

¹ As of December 31, 2013, the Company had approximately $852,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company's use to approximately $122,000 per year during the carry forward period, which expires in 2020.

Schedule of the Reconciliation of Unrecognized Tax Benefits

The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is presented in the following table:

(In thousands)	2013			2012			2011
Balance at January 1	$	1,885		$	2,069		$	1,877
Changes in unrecognized tax benefits as a result of tax
positions taken during a prior year		(666	)		(140	)		287
Changes in unrecognized tax benefits as a result of tax
position taken during the current year		374			419			475
Decreases in unrecognized tax benefits relating to
settlements with taxing authorities		-			-			-
Reductions to unrecognized tax benefits as a result of a
lapse of the applicable statute of limitations		(385	)		(463	)		(570	)
Balance at December 31	$	1,208		$	1,885		$	2,069