INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes Tables

Schedule of provision for income taxes

(Dollars in Thousands)	2013			2012			2011
Current:
Federal	$	(75	)	$	1,189		$	3,124
State		195			280			424
		120			1,469			3,548
Deferred:
Federal		1,650			(1,260	)		(1,828	)
State		99			(1,597	)		(1,350	)
Valuation Allowance		56			52			259
		1,805			(2,805	)		(2,919	)
Total:
Federal		1,575			(71	)		1,296
State		294			(1,317	)		(926	)
Valuation Allowance		56			52			259
Total	$	1,925		$	(1,336	)	$	629

Schedule of effective income tax rate reconciliation

(Dollars in Thousands)	2013			2012			2011
Tax Expense at Federal Statutory Rate	$	2,790		$	(430	)	$	1,934
Increases (Decreases) Resulting From:
Tax-Exempt Interest Income		(385	)		(402	)		(612	)
Change in Reserve for Uncertain Tax Positions		(777	)		(347	)		(168	)
State Taxes, Net of Federal Benefit		191			(856	)		(602	)
Other		50			199			(182	)
Change in Valuation Allowance		56			52			259
Increase Deferred Tax Liability for Equity Investment		—			448			—
Actual Tax Expense	$	1,925		$	(1,336	)	$	629

Schedule of deferred income tax liabilities and assets

(Dollars in Thousands)	2013		2012
Deferred Tax Assets Attributable to:
Allowance for Loan Losses	$	8,910	$	11,253
Accrued Pension/SERP		5,284		18,927
State Net Operating Loss and Tax Credit Carry-Forwards		4,906		5,002
Other Real Estate Owned		9,459		9,869
Other		5,304		7,100
Total Deferred Tax Assets	$	33,863	$	52,151
Deferred Tax Liabilities Attributable to:
Depreciation on Premises and Equipment	$	6,322	$	7,117
Deferred Loan Fees and Costs		2,446		2,864
Intangible Assets		3,419		3,119
Accrued Pension/SERP		—		1,870
Other		526		1,082
Total Deferred Tax Liabilities		12,713		16,052
Valuation Allowance		1,226		1,170
Net Deferred Tax Asset	$	19,924	$	34,929

Schedule of beginning and ending unrecognized tax benefit

(Dollars in Thousands)	2013			2012			2011
Balance at January 1,	$	4,209		$	4,577		$	4,770
Additions Based on Tax Positions Related to Current  Year		—			508			522
Decrease Due to Lapse in Statue of Limitations		(981	)		(876	)		(715	)
Balance at December 31	$	3,228		$	4,209		$	4,577