Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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)	2014			2013		2012
Current:
Federal	$	7,189		$	6,729	$	6,195
State		1,191			448		718
Deferred:
Federal		(585	)		39		933
State		(36	)		18		41
Total income tax expense	$	7,759		$	7,234	$	7,887

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 2014, 2013 and 2012 to income before income tax expense is as follows:

	For the Years Ended December 31,
(In thousands)	2014			2013			2012
Expected income tax expense	$	11,127		$	10,756		$	10,917
(Reductions) increases resulting from:
Tax-exempt income		(3,896	)		(3,297	)		(3,633	)
State taxes, net of federal benefit		751			303			493
Other, net		(223	)		(528	)		110
Total income tax expense	$	7,759		$	7,234		$	7,887

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)	2014			2013
Deferred tax assets:
Allowance for loan losses	$	4,441		$	4,368
ASC 715 pension funding liability		10,887			5,444
Net operating loss carryforward¹		255			298
Stock compensation		—			337
Supplemental executive retirement plan accrual		1,392			1,130
Other		509			569
Total deferred tax assets	$	17,484		$	12,146
Deferred tax liabilities:
Premises and equipment		(976	)		(1,767	)
Pension		(5,636	)		(6,233	)
Stock compensation		(394	)		—
Intangible/assets		(1,153	)		(996	)
Unrealized gain on investment in securities available-for-sale		(5,172	)		(2,086	)
Other		(407	)		(353	)
Total deferred tax liabilities	$	(13,738	)	$	(11,435	)
Net deferred tax assets	$	3,746		$	711

As of December 31, 2014, the Company had approximately $729,000 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)	2014			2013			2012
Balance at January 1	$	1,208		$	1,885		$	2,069
Changes in unrecognized tax benefits as a result of tax
positions taken during a prior year		(107	)		(666	)		(140	)
Changes in unrecognized tax benefits as a result of tax
position taken during the current year		267			374			419
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		(251	)		(385	)		(463	)
Balance at December 31	$	1,117		$	1,208		$	1,885