XML 116 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
INCOME TAXES
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
 
The following temporary differences gave rise to the net deferred tax asset position at December 31, 2013 and 2012:

(In Thousands)
 
2013
 
2012
Deferred tax assets:
 
 

 
 

Allowance for loan losses
 
$
3,167

 
$
2,590

Deferred compensation
 
1,459

 
484

Pension
 
1,336

 
2,384

Loan fees and discounts
 

 
153

Investment securities allowance
 
689

 
782

Unrealized loss on available for sale securities
 
1,117

 

Low income housing credit carryforward
 
2,803

 
3,528

Capital loss carryforward
 
103

 
230

Other
 
1,215

 
1,182

Total
 
11,889

 
11,333

Deferred tax liabilities:
 
 

 
 

Unrealized gain on available for sale securities
 

 
5,236

Bond accretion
 
207

 
170

Loan fees and discounts
 
49

 

Depreciation
 
842

 
369

Amortization
 
902

 
827

Total
 
2,000

 
6,602

Deferred tax asset, net
 
$
9,889

 
$
4,731


 
The current low income housing credit carryforward will expire in thirteen years. The current capital loss carryforward will expire in four years.  The Company fully anticipates being able to use the carryforwards.
 
No valuation allowance was established at December 31, 2013 and 2012, because of the Company’s ability to carry back capital losses to recover taxes paid in previous years and certain tax strategies, together with the anticipated future taxable income as evidenced by the Company’s earning potential.
 
The provision or benefit for income taxes is comprised of the following for the year ended December 31, 2013, 2012, and 2011:
 
(In Thousands)
 
2013
 
2012
 
2011
Currently payable
 
$
3,328

 
$
2,726

 
$
2,370

Deferred benefit (provision)
 
123

 
(128
)
 
(457
)
Total provision
 
$
3,451

 
$
2,598

 
$
1,913


 
A reconciliation between the expected income tax or benefit and the effective income tax rate on income before income tax provision or benefit follows for the year ended December 31, 2013, 2012, and 2011:
 
 
 
2013
 
2012
 
2011
(In Thousands)
 
Amount
 
%
 
Amount
 
%
 
Amount
 
%
Provision at expected rate
 
$
5,962

 
34.00
 %
 
$
5,592

 
34.00
 %
 
$
4,854

 
34.00
 %
(Decrease) increase in tax resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

Tax-exempt income
 
(1,933
)
 
(11.02
)%
 
(2,235
)
 
(13.59
)%
 
(2,141
)
 
(15.00
)%
Tax credits
 
(737
)
 
(4.20
)%
 
(737
)
 
(4.48
)%
 
(737
)
 
(5.16
)%
Other, net
 
159

 
0.90
 %
 
(22
)
 
(0.13
)%
 
(63
)
 
(0.44
)%
Effective income tax provision and rate
 
$
3,451

 
19.68
 %
 
$
2,598

 
15.80
 %
 
$
1,913

 
13.40
 %