XML 39 R21.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2017
INCOME TAXES |
INCOME TAXES | 13. INCOME TAXES The following table details the components of income tax expense:
|  | Year Ended December 31, |
(In thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,762 |  |  | $ | 14,730 |  |  | $ | 8,248 |
State |  |  | 937 |  |  |  | 780 |  |  |  | 1,230 |
Total current |  |  | 9,699 |  |  |  | 15,510 |  |  |  | 9,478 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 10,251 |  |  |  | 2,388 |  |  |  | 1,457 |
State |  |  | (1,004 | ) |  |  | 897 |  |  |  | (157 | )
Total deferred |  |  | 9,247 |  |  |  | 3,285 |  |  |  | 1,300 |
Total income tax expense |  | $ | 18,946 |  |  | $ | 18,795 |  |  | $ | 10,778 |
The following table is a reconciliation of the expected federal income tax expense at the statutory tax rate to the actual provision:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
(Dollars in thousands) |  | Amount |  |  | Percentage of Pre-tax Earnings |  |  | Amount |  |  | Percentage of Pre-tax Earnings |  |  | Amount |  |  | Percentage of Pre-tax Earnings |
Federal income tax expense computed by applying the statutory rate to income before income taxes |  | $ | 13,820 |  |  |  | 35 | % |  | $ | 19,000 |  |  |  | 35 | % |  | $ | 11,161 |  |  |  | 35 | %
Tax exempt income |  |  | (1,808 | ) |  |  | (5 | ) |  |  | (1,661 | ) |  |  | (3 | ) |  |  | (1,356 | ) |  |  | (4 | )
State taxes, net of federal income tax benefit |  |  | 725 |  |  |  | 2 |  |  |  | 1,090 |  |  |  | 2 |  |  |  | 1,087 |  |  |  | 3 |
Deferred tax asset remeasurement (1) |  |  | 7,572 |  |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Other |  |  | (1,363 | ) |  |  | (3 | ) |  |  | 366 |  |  |  | 1 |  |  |  | (114 | ) |  |  | - |
Income tax expense |  | $ | 18,946 |  |  |  | 48 | % |  | $ | 18,795 |  |  |  | 35 | % |  | $ | 10,778 |  |  |  | 34 | %
| (1) | 2017 amount includes a charge to write-down deferred tax assets due to the enactment of the Tax Act of $7.6 million.
The following table summarizes the composition of deferred tax assets and liabilities:
|  | December 31, |
(In thousands) |  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan losses and off-balance sheet credit exposure |  | $ | 9,906 |  |  | $ | 11,401 |
Net unrealized losses on securities |  |  | 4,650 |  |  |  | 6,019 |
Compensation and related benefit obligations |  |  | 2,508 |  |  |  | 2,226 |
Purchase accounting fair value adjustments |  |  | 7,576 |  |  |  | 14,376 |
Net change in pension and other post-retirement benefits plans |  |  | 2,279 |  |  |  | 3,249 |
Net operating loss carryforward |  |  | 1,997 |  |  |  | 2,470 |
Other |  |  | 1,119 |  |  |  | 756 |
Total deferred tax assets |  |  | 30,035 |  |  |  | 40,497 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Pension and SERP expense |  |  | (3,915 | ) |  |  | (4,715 | )
Depreciation |  |  | (808 | ) |  |  | (1,537 | )
REIT undistributed net income |  |  | (2,146 | ) |  |  | (86 | )
Net deferred loan costs and fees |  |  | (1,406 | ) |  |  | (1,844 | )
Net gain on cash flow hedges |  |  | (792 | ) |  |  | (341 | )
State and local taxes |  |  | (1,255 | ) |  |  | (1,862 | )
Other |  |  | (221 | ) |  |  | (179 | )
Total deferred tax liabilities |  |  | (10,543 | ) |  |  | (10,564 | )
Net deferred tax asset |  | $ | 19,492 |  |  | $ | 29,933 |
On December 22, 2017, the President signed the Tax Act, resulting in significant changes to existing tax law, including a lower federal statutory tax rate of 21%. The Tax Act was generally effective as of January 1, 2018. In the fourth quarter of 2017, the Company recorded a charge of $7.6 million, which consisted primarily of the deferred tax asset remeasurement from the previous 35% federal statutory rate to the new 21% federal statutory tax rate. On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides a measurement period of up to one year from the enactment date to refine and complete the accounting. The Company has completed its accounting for the effects of the Tax Act, and has made reasonable estimates of the effect of the change in federal statutory tax rate and remeasurement of deferred tax assets based on the rate at which they are expected to reverse in the future. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State and City of New York and the State of New Jersey. The Company is no longer subject to examination by taxing authorities for years before 2014. There are no unrecorded tax benefits, and the Company does not expect the total amount of unrecognized income tax benefits to significantly increase in the next twelve months. In connection with the acquisition of FNBNY, the Company acquired a federal net operating loss (“NOL”) carryforward subject to Internal Revenue Code Section 382. The Company recorded a deferred tax asset that it expects to realize within the carryforward period. At December 31, 2017, the remaining federal NOL carryforward was $3.5 million. In connection with the CNB and FNBNY acquisitions, the Company acquired New York State and New York City NOL carryforwards. The Company recorded a deferred tax asset that it expects to realize within the carryforward period. At December 31, 2017, the remaining New York State and New York City NOL carryforwards were$18.0 million and $8.8 million, respectively.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration