9	Income Taxes

The reconciliation between the provision (benefit) for income taxes and the amount computed using the federal statutory rate is as follows:


	Year Ended December 31,
	2013					2012					2011
	(Dollars in thousands)
Income tax at statutory rate	$	(1,223	)	35.0	%	$	16,144		35.0	%	$	(2,643	)	35.0	%
State and local income tax, net of Federal benefit		(807	)	23.1	%		2,446		5.3	%		(3	)	0.1	%
Tax-exempt interest income		(1,585	)	45.3	%		(1,712	)	(3.7	)%		(1,873	)	24.8	%
Non-deductible expenses and other		(1,011	)	28.9	%		67		0.1	%		(894	)	11.8	%

Provision (benefit) for income taxes	$	(4,626	)	132.3	%	$	16,945		36.7	%	$	(5,413	)	71.7	%

The components of the provision (benefit) for income taxes were as follows:


	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Federal:
Current	$	3,476		$	13,457		$	(11,167	)
Deferred		(6,860	)		(275	)		5,759
State and Local:
Current		892			1,560			678
Deferred		(2,134	)		2,203			(683	)

Total	$	(4,626	)	$	16,945		$	(5,413	)

The tax effect of temporary differences giving rise to deferred tax assets and liabilities were as follows:


	December 31, 2013				December 31, 2012
	Asset		Liability		Asset		Liability
	(In thousands)
Allowance for loan losses	$	10,763		—	$	10,953		—
Supplemental executive retirement benefit		5,229		—		4,764		—
Other-than-temporary impairment of investments		4,655		—		4,123		—
Other		2,700	$	597		2,816		—
Unfunded SERP liability		695		—		981		—
Deferred compensation		235		—		240		—
Share based compensation costs		287		—		194		—
State net operating loss carryforward		189		—		—		—
Intangible assets		2,820		—		—	$	3,825
Property and equipment		1,198		—		—		780
Unrealized gains/losses on available for sale securities		3,259		—		—		203

Total	$	32,030	$	597	$	24,071	$	4,808

Net deferred tax asset	$	31,433			$	19,263

The Company determined that it was not required to establish a valuation allowance for deferred tax assets in accordance with GAAP since it is more likely than not that the deferred tax asset will be realized through carryback to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income.

At December 31, 2013 and 2012, the Company had no unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. The Company policy is to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no expenses accrued for interest and penalties on unrecognized tax benefits for the years ended December 31, 2013 and 2012.

In May 2013, the Internal Revenue Service (IRS) commenced a routine examination of the Company’s 2009, 2010 and 2011 income tax returns. In January 2014, the Company received preliminary results of the examinations and there were no significant adjustments noted. In September 2013, the examination of the Company’s New York State income tax returns for the years 2005 through 2008 were completed without adjustment.