INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

INCOME TAXES

Schedule of components of income tax expense

Years Ended December 31,	2014		2013		2012
(In thousands)
Current:
Federal	$	3,926	$	5,500	$	5,660
State	507		664		582
	4,433		6,164		6,242
Deferred:
Federal	2,187		403		(229		)
State	619		102		67
	2,806		505		(162		)
Income tax expense	$	7,239	$	6,669	$	6,080

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

Years Ended December 31,	2014					2013					2012
(Dollars in thousands)	Amount			Percentage of Pre-tax Earnings		Amount			Percentage of Pre-tax Earnings		Amount			Percentage of Pre-tax Earnings
Federal income tax expense computed by applying the statutory rate to income before income taxes	$	7,141		34	%	$	6,828		34	%	$	6,479		34	%
Tax exempt interest	(665		)	(3	)	(740		)	(4	)	(878		)	(5	)
State taxes, net of federal income tax benefit	743			4		502			3		445			2
Other	20			—		79			1		34			1
Income tax expense	$	7,239		35	%	$	6,669		34	%	$	6,080		32	%

Schedule of components of deferred tax assets and liabilities

December 31,	2014			2013
(In thousands)
Deferred tax assets:
Allowance for loan losses	$	7,311		$	6,815
Net unrealized losses on securities	2,177			7,895
Restricted stock awards	1,003			815
Purchase accounting fair value adjustments	8,321			666
Net change in pension liability	2,985			781
Net operating loss carryforward	2,063			426
Net change in cash flow hedge	374			65
Other	351			379
Total	24,585			17,842
Deferred tax liabilities:
Pension and SERP expense	(3,765		)	(3,491		)
Depreciation	(1,832		)	(1,548		)
REIT undistributed net income	(628		)	(707		)
Net deferred loan costs and fees	(981		)	(915		)
Other	(707		)	(252		)
Total	(7,913		)	(6,913		)
Net deferred tax asset	$	16,672		$	10,929