Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)
The components of income tax expense are as follows:
 
 
 
Year Ended December 31,
 
 
 
2013
 
2012
 
2011
 
 
 
(In Thousands)
 
Current tax expense:
 
 
 
 
 
 
 
 
 
 
Federal
 
$
21,264
 
$
17,993
 
$
12,045
 
State
 
 
899
 
 
1,308
 
 
1,584
 
Total current tax expense
 
 
22,163
 
 
19,301
 
 
13,629
 
Deferred tax expense (benefit):
 
 
 
 
 
 
 
 
 
 
Federal
 
 
(1,616)
 
 
(1,999)
 
 
(1,100)
 
State
 
 
(189)
 
 
(182)
 
 
(140)
 
Total deferred tax expense
 
 
(1,805)
 
 
(2,181)
 
 
(1,240)
 
Total income tax expense
 
$
20,358
 
$
17,120
 
$
12,389
 
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, 2013
 
 
 
Amount
 
% of Pre-tax
Earnings
 
 
 
(In Thousands)
 
 
 
Income tax at statutory federal rate
 
$
21,691
 
35.00
%
Effect on rate of:
 
 
 
 
 
 
State income tax, net of federal tax effect
 
 
558
 
0.90
%
Tax-exempt income, net of expenses
 
 
(1,200)
 
(1.94)
%
Bank owned life insurance contracts
 
 
(698)
 
(1.13)
%
Incentive stock option expense
 
 
66
 
0.11
%
Other
 
 
(59)
 
(0.09)
%
Effective income tax and rate
 
$
20,358
 
32.85
%
 
 
 
 
 
 
 
 
 
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
%
Deferred Tax Assets and Liabilities
The components of net deferred tax asset are as follows:
 
 
 
December 31,
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
Deferred tax assets:
 
 
 
 
 
 
 
Allowance for loan losses
 
$
11,844
 
$
10,142
 
Other real estate owned
 
 
1,222
 
 
1,064
 
Nonqualified equity awards
 
 
773
 
 
583
 
Nonaccrual interest
 
 
374
 
 
491
 
Other deferred tax assets
 
 
141
 
 
114
 
Total deferred tax assets
 
 
14,354
 
 
12,394
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
Net unrealized (gain) loss on securities available for sale
 
 
2,102
 
 
3,929
 
Depreciation
 
 
514
 
 
510
 
Prepaid expenses
 
 
161
 
 
140
 
Deferred loan fees
 
 
83
 
 
237
 
Investments
 
 
229
 
 
93
 
Other deferred tax liabilities
 
 
247
 
 
99
 
Total deferred tax liabilities
 
 
3,336
 
 
5,008
 
Net deferred income tax assets
 
$
11,018
 
$
7,386
 
Summary of the changes in the amount of unrecognized benefits
The following table presents a summary of the changes during 2013, 2012 and 2011 in the amount of unrecognized tax benefits that are included in the consolidated balance sheets.   
 
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
Balance, beginning of year
 
$
161
 
$
-
 
$
-
 
Increases related to prior year tax positions
 
 
276
 
 
-
 
 
-
 
Decreases related to prior year tax positions
 
 
-
 
 
-
 
 
-
 
Increases related to current year tax positions
 
 
-
 
 
161
 
 
-
 
Settlements
 
 
-
 
 
-
 
 
-
 
Lapse of statute
 
 
-
 
 
-
 
 
-
 
Balance, end of year
 
$
437
 
$
161
 
$
-