Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)

The components of income tax expense are as follows:

 

    Year Ended December 31,  
    2012     2011     2010  
    (In Thousands)
                         
Current   $ 19,301     $ 13,629     $ 11,570  
Deferred     (2,181 )     (1,240 )     (2,212 )
Income tax expense   $ 17,120     $ 12,389     $ 9,358  
Effective Income Tax Rate Reconciliation

The Company’s total income tax expense differs from the amounts computed by applying the Federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:

 

    Year Ended December 31, 2012  
    Amount     % of Pre-tax
Earnings		  
      (In Thousands)  
Income tax at statutory federal rate   $ 18,047       35.00 %
Effect on rate of:                
State income tax, net of federal tax effect     709       1.37 %
Tax-exempt income, net of expenses     (1,007 )     (1.95 )%
Bank owned life insurance contracts     (568 )     (1.10 )%
Incentive stock option expense     121       0.23 %
Other     (182 )     (0.35 )%
Effective income tax and rate   $ 17,120       33.20 %

 

    Year Ended December 31, 2011  
    Amount     % of Pre-tax
Earnings		  
      (In Thousands)
Income tax at statutory federal rate   $ 12,540       35.00 %
Effect on rate of:                
State income tax, net of federal tax effect     967       2.70 %
Tax-exempt income, net of expenses     (875 )     (2.44 )%
Bank owned life insurance contracts     (137 )     (0.38 )%
Incentive stock option expense     128       0.36 %
Other     (234 )     (0.65 )%
Effective income tax and rate   $ 12,389       34.59 %

 

    Year Ended December 31, 2010  
    Amount     % of Pre-tax
Earnings		  
    (In Thousands)        
Income tax at statutory federal rate   $ 9,358       35.00 %
Effect on rate of:                
State income tax, net of federal tax effect     715       2.67 %
Tax-exempt income, net of expenses     (773 )     (2.89 )%
Incentive stock option expense     144       0.54 %
Other     (86 )     (0.32 )%
Effective income tax and rate   $ 9,358       35.00 %
Deferred Tax Assets and Liabilities

The components of net deferred tax asset are as follows:

 

    December 31,  
    2012     2011     2010  
    (In Thousands)  
Other real estate   $ 1,064     $ 452     $ 646  
Start-up costs     101       115       127  
Net unrealized (gains) losses on securities available for sale     (3,929 )     (4,220 )     (1,528 )
Depreciation     (509 )     (489 )     (206 )
Deferred loan fees     (237 )     (176 )     (72 )
Allowance for loan losses     10,142       8,509       6,974  
Nonqualified equity awards     583       436       194  
Other     171       287       231  
Net deferred income tax assets   $ 7,386     $ 4,914     $ 6,366