Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of deferred tax assets and liabilities

Significant components of the Corporation’s deferred tax assets and liabilities are as follows:



December 31 (In thousands)	2014		2013
Deferred tax assets:
Allowance for loan losses	$	19,023	$	20,814
Accumulated other comprehensive loss – Pension Plan	8,005		3,015
Accumulated other comprehensive loss – Unrealized losses on securities	—		16,057
Intangible assets	543		673
Deferred compensation	3,820		3,611
OREO devaluations	3,984		5,287
Partnership adjustments	4,725		3,793
Net deferred loan fees	933		282
Other	3,795		3,423
Total deferred tax assets	$	44,828	$	56,955
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	677		—
Deferred investment income	10,199		10,199
Pension Plan	25,949		25,261
Mortgage servicing rights	3,015		3,154
Other	804		850
Total deferred tax liabilities	$	40,644	$	39,464
Net deferred tax assets	$	4,184	$	17,491

Federal and state income taxes

The components of the provision for federal income taxes are shown below:



December 31, (In thousands)	2014		2013			2012
Currently payable
Federal	$	27,039	$	27,587		$	12,984

Deferred
Federal	1,563		(2,456		)	12,717
Total	28,602		25,131			25,701

Schedule of income tax rate reconciliation

The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2014, 2013 and 2012.



	2014		2013		2012

Statutory federal corporate tax rate	35.0	%	35.0	%	35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(0.5	)%	(0.8	)%	(0.9	)%
Bank owned life insurance	(1.5	)%	(1.7	)%	(1.6	)%
Tax credits (low income housing)	(6.3	)%	(6.6	)%	(6.1	)%
Other	(1.3	)%	(1.3	)%	(1.8	)%
Effective tax rate	25.4	%	24.6	%	24.6	%

Reconciliation of unrecognized tax benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.



(In thousands)	2014			2013			2012
January 1 Balance	$	518		$	517		$	485
Additions based on tax positions related to the current year	76			74			74
Additions for tax positions of prior years	14			4			25
Reductions for tax positions of prior years	—			—			—
Reductions due to statute of limitations	(76		)	(77		)	(67		)
December 31 Balance	$	532		$	518		$	517