INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Schedule of components of income tax expense

	Year Ended December 31,
(In thousands)	2016		2015			2014
Current:
Federal	$	14,730	$	8,248		$	3,926
State		780		1,230			507
Total current		15,510		9,478			4,433
Deferred:
Federal		2,388		1,457			2,187
State		897		(157	)		619
Total deferred		3,285		1,300			2,806
Total income tax expense	$	18,795	$	10,778		$	7,239

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

	Year Ended December 31,
	2016						2015						2014
(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	$	19,000			35	%	$	11,161			35	%	$	7,141			34	%
Tax exempt interest		(986	)		(2	)		(927	)		(3	)		(665	)		(3	)
State taxes, net of federal income tax benefit		1,090			2			1,087			3			743			4
Other		(309	)		—			(543	)		(1	)		20			—
Income tax expense	$	18,795			35	%	$	10,778			34	%	$	7,239			35	%

Schedule of components of deferred tax assets and liabilities

	December 31,
(In thousands)	2016			2015
Deferred tax assets:
Allowance for loan losses and off-balance sheet credit exposure	$	11,401		$	9,154
Net unrealized losses on securities		6,019			3,224
Compensation and related benefit obligations		2,226			1,435
Purchase accounting fair value adjustments		14,376			15,942
Net change in pension and other post-retirement benefits plans		3,249			2,811
Net operating loss carryforward		2,470			1,955
Net loss on cash flow hedges		-			524
Other		756			672
Total deferred tax assets		40,497			35,717
Deferred tax liabilities:
Pension and SERP expense		(4,715	)		(4,142	)
Depreciation		(1,537	)		(1,828	)
REIT undistributed net income		(86	)		(482	)
Net deferred loan costs and fees		(1,844	)		(1,416	)
Net gain on cash flow hedges		(341	)		-
State and local taxes		(1,862	)		(1,541	)
Other		(179	)		-
Total deferred tax liabilities		(10,564	)		(9,409	)
Net deferred tax asset	$	29,933		$	26,308