INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Schedule of components of the provision for income taxes

(In thousands)	2016		2015		2014
Current	$	708	$	1,386	$	3,707
Deferred		3,981		1,799		(175)
Provision for income taxes	$	4,689	$	3,185	$	3,532

Schedule of tax effects of temporary differences and tax credits

(In thousands)	2016		2015
Deferred tax assets:
Allowance for loan losses	$	4,900	$	4,497
Postretirement benefit obligation		2,045		1,986
Deferred compensation		1,454		1,466
Accrued expenses		333		565
Organizational/start-up expenses		376		434
Capital loss carryforward		89		206
Interest rate swap		—		83
Qualified school bond tax credits		921		—
Affordable housing/other tax credits		74		—
Other		595		649
Net operating loss		356		606
Investment in real estate limited partnerships, net		—		158
Unrealized loss on securities available for sale		295		—
Unrealized loss on securities held to maturity		755		1,205
Total deferred tax assets	$	12,193	$	11,855
Deferred tax liabilities:
Loan mark-to-market adjustment	$	(8,218)	$	(3,410)
Installment sales		(224)		(128)
Unrealized gain on securities available for sale		—		(93)
Depreciation		(743)		(998)
Core deposit intangible		(403)		(471)
Other		(206)		(227)
Accrued pension cost		(3,200)		(3,181)
Total deferred tax liabilities	$	(12,994)	$	(8,508)
Net deferred tax (liability) asset	$	(801)	$	3,347

Schedule of reconciliation of the federal income tax provision

(In thousands)	2016		2015		2014
Applicable statutory Federal income tax	$	6,753	$	5,452	$	5,402
Increase (reduction) in taxes resulting from:
Low Income Housing Projects		1,206		779		858
Tax-exempt income		(823)		(736)		(729)
Tax credits		(2,444)		(1,771)		(1,936)
Bank owned life insurance		(71)		(83)		(107)
State tax		70		17		—
Other, net		(2)		(473)		44
Provision for income taxes	$	4,689	$	3,185	$	3,532