(10) Income Taxes

The provision (benefit) for income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands):


	Years Ended December 31,
	2014		2013			2012
Current:
Federal	$	9,512	$	9,039		$	8,893
State		996		1,324			1,385

Total current		10,508		10,363			10,278

Deferred:
Federal		30		(1,421	)		664
State		73		(329	)		(15	)

Total deferred		103		(1,750	)		649

	$	10,611	$	8,613		$	10,927

Included in other comprehensive income is income tax (benefit) expense attributable to net unrealized (losses) gains on securities available-for-sale arising during the year in the amount of $(338,000), $(4,605,000) and $1,739,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Included in stockholders’ equity is income tax benefit (expense) attributable to stock plans in the amount of $51,000, $(31,000) and $(608,000) for the years ended December 31, 2014, 2013 and 2012, respectively.

A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):


	Years Ended December 31,
	2014			2013			2012
Income before provision for income taxes	$	30,531		$	24,943		$	30,947
Applicable statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
Computed “expected” Federal income tax expense	$	10,686		$	8,730		$	10,831
Increase (decrease) in Federal income tax expense resulting from:
ESOP		99			87			66
ESOP dividends		(229	)		(233	)		(233	)
Earnings on BOLI		(517	)		(491	)		(468	)
State income taxes net of Federal benefit		695			642			757
Other items, net		(123	)		(122	)		(26	)

	$	10,611		$	8,613		$	10,927

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are presented in the following table (in thousands):


	December 31,
	2014			2013
Deferred tax assets:
Allowance for loan losses	$	6,668		$	8,894
Reserve for repurchased loans		422			600
Valuation allowances for repurchased loans		—			179
Reserve for uncollected interest		449			393
FHLB advance prepayment fee		—			385
Incentive compensation		1,273			1,066
Deferred compensation		605			754
Other reserves		43			113
Stock plans		1,517			1,250
ESOP		165			125
Intangible assets		22			60
Other real estate owned		379			311
Capital loss carryover		—			35
Unrealized loss on securities		4,909			4,571
State alternative minimum tax		1,160			1,160

Total gross deferred tax assets		17,612			19,896

Deferred tax liabilities:
Excess servicing on sale of mortgage loans		(136	)		(1,122	)
Investments, discount accretion		(435	)		(439	)
Deferred loan and commitment costs, net		(1,217	)		(1,349	)
Premises and equipment, differences in depreciation		(235	)		(388	)
Undistributed REIT income		—			(1,244	)

Total gross deferred tax liabilities		(2,023	)		(4,542	)

Net deferred tax assets	$	15,589		$	15,354

At December 31, 2014, 2013 and 2012, the Company determined that it is not required to establish a valuation reserve for the remaining net deferred tax assets since it is “more likely than not” that the net deferred tax assets will be realized through future reversals of existing taxable temporary differences, future taxable income and tax planning strategies. The conclusion that it is “more likely than not” that the remaining net deferred tax assets will be realized is based on the history of earnings and the prospects for continued growth. Management will continue to review the tax criteria related to the recognition of deferred tax assets.

Retained earnings at December 31, 2014 includes approximately $10,750,000 for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to shareholders. At December 31, 2014, the Company had an unrecognized deferred tax liability of $4,391,000 with respect to this reserve.

There were no unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012. The tax years that remain subject to examination by the Federal government include the year ended December 31, 2011 and forward. The tax years that remain subject to examination by the States of New Jersey and New York include the years ended December 31, 2010 and forward.