INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Schedule of components of income tax expense

	Year Ended December 31,
(In thousands)	2018		2017		2016
Current:
Federal	$	5,270	$	8,762	$	14,730
State		1,023		937		780
Total current		6,293		9,699		15,510
Deferred:
Federal		3,299		10,251		2,388
State		(451)		(1,004)		897
Total deferred		2,848		9,247		3,285
Total income tax expense	$	9,141	$	18,946	$	18,795

Schedule of reconciliation of the expected Federal income tax expense at the statutory tax rate to the actual provision

	Year Ended December 31,
	2018				2017				2016
			Percentage				Percentage				Percentage
			of Pre-tax				of Pre-tax				of Pre-tax
(Dollars in thousands)	Amount		Earnings		Amount		Earnings		Amount		Earnings
Federal income tax expense computed by applying the statutory rate to income before income taxes	$	10,157	21	%	$	13,820	35	%	$	19,000	35	%
Tax-exempt income		(1,002)	(2)			(1,808)	(5)			(1,661)	(3)
State taxes, net of federal income tax benefit		1,999	4			725	2			1,090	2
Deferred tax asset remeasurement (1)		—	—			7,572	19			—	—
Other		(2,013)	(4)			(1,363)	(3)			366	1
Income tax expense	$	9,141	19	%	$	18,946	48	%	$	18,795	35	%

(1) 2017 amount includes a charge to write-down deferred tax assets due to the enactment of the Tax Act of $7.6 million.

Schedule of components of deferred tax assets and liabilities

	December 31,
(In thousands)	2018		2017
Deferred tax assets:
Allowance for loan losses and off-balance sheet credit exposure	$	9,309	$	9,906
Net unrealized losses on securities		4,810		4,650
Compensation and related benefit obligations		2,427		2,508
Purchase accounting fair value adjustments		4,141		7,576
Net change in pension and other post-retirement benefits plans		2,630		2,279
Net operating loss carryforward		4,746		1,997
Other		671		1,119
Total deferred tax assets		28,734		30,035
Deferred tax liabilities:
Pension and SERP expense		(4,559)		(3,915)
Depreciation		(1,163)		(808)
REIT undistributed net income		(2,110)		(2,146)
Net deferred loan costs and fees		(2,206)		(1,406)
Net gain on cash flow hedges		(1,210)		(792)
State and local taxes		(1,468)		(1,255)
Other		(353)		(221)
Total deferred tax liabilities		(13,069)		(10,543)
Net deferred tax asset	$	15,665	$	19,492