XML 35 R19.htm IDEA: XBRL DOCUMENT
v3.8.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES For the years ended December 31, 2017, 2016 and 2015, income tax expense attributable to income from operations consisted of the following (in thousands):
|  | 2017 |  | 2016 |  | 2015
Current expense: |  |  |  |  |  |
Federal |  | $ | 2,594 |  |  | $ | 6,330 |  |  | $ | 3,668 |
State |  | 417 |  |  | 638 |  |  | 216 |
Total current |  | 3,011 |  |  | 6,968 |  |  | 3,884 |
Deferred expense/(benefit): |  |  |  |  |  |
Federal |  | 942 |  |  | (2,177 | ) |  | 595 |
State |  | 382 |  |  | (387 | ) |  | 179 |
Remeasurement of deferred tax assets |  | 2,927 |  |  | — |  |  | — |
Total deferred |  | 4,251 |  |  | (2,564 | ) |  | 774 |
Income tax expense |  | $ | 7,262 |  |  | $ | 4,404 |  |  | $ | 4,658 |
Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate to income before income tax expense as follows (in thousands):
|  | 2017 |  | 2016 |  | 2015
Statutory federal tax rate |  | 34 | % |  | 34 | % |  | 34 | %
Tax computed at statutory rate |  | $ | 5,006 |  |  | $ | 4,907 |  |  | $ | 4,791 |
Increase (reduction) resulting from: |  |  |  |  |  |
Tax-exempt income |  | (663 | ) |  | (511 | ) |  | (441 | )
831(b) premium adjustment |  | (269 | ) |  | (368 | ) |  | — |
Dividend exclusion |  | (8 | ) |  | (5 | ) |  | (41 | )
State taxes, net of Federal impact |  | 201 |  |  | 165 |  |  | 238 |
Nondeductible interest expense |  | 8 |  |  | 9 |  |  | 8 |
Remeasurement of deferred tax assets |  | 2,927 |  |  | — |  |  | — |
Other items, net |  | 60 |  |  | 207 |  |  | 103 |
Income tax expense |  | $ | 7,262 |  |  | $ | 4,404 |  |  | $ | 4,658 |
Effective tax rate |  | 49.4 | % |  | 30.5 | % |  | 33.1 | %
The higher tax expense in 2017 when compared to 2016 is the result of $2.9 million of additional tax expense to estimate the remeasurement of deferred tax assets due to the lowering of the federal corporate tax rate to 21%. On December 22, 2017, the Tax Act was enacted into legislation. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. Accordingly, the Corporation has recorded $2.9 million for the remeasurement of the Corporation's deferred tax assets. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016, are presented below (in thousands):
|  | 2017 |  | 2016
Deferred tax assets: |  |  |  |
Allowance for loan losses |  | $ | 5,396 |  |  | $ | 5,405 |
Accrual for employee benefit plans |  | 186 |  |  | 337 |
Depreciation |  | 86 |  |  | 2,119 |
Deferred compensation and directors' fees |  | 872 |  |  | 1,195 |
Purchase accounting adjustment – deposits |  | 7 |  |  | 21 |
Purchase accounting adjustment – loans |  | 35 |  |  | 44 |
Purchase accounting adjustment – fixed assets |  | 149 |  |  | 221 |
Gain on deemed sale of securities |  | 567 |  |  | 798 |
Net unrealized losses on securities available for sale |  | 1,169 |  |  | 2,643 |
Accounting for defined benefit pension and other benefit plans |  | 2,370 |  |  | 4,091 |
Nonaccrued interest |  | 544 |  |  | 944 |
Accrued expense |  | 868 |  |  | 854 |
Other items, net |  | 160 |  |  | 286 |
Total gross deferred tax assets |  | 12,409 |  |  | 18,958 |
Deferred tax liabilities: |  |  |  |
Deferred loan fees and costs |  | 676 |  |  | 940 |
Prepaid pension |  | 3,023 |  |  | 3,956 |
Discount accretion |  | 239 |  |  | 342 |
Core deposit intangible |  | 1,026 |  |  | 1,460 |
REIT dividend |  | 844 |  |  | — |
Other |  | 101 |  |  | 152 |
Total gross deferred tax liabilities |  | 5,909 |  |  | 6,850 |
Net deferred tax asset |  | $ | 6,500 |  |  | $ | 12,108 |
Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the loss carryback period. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax assets, the level of historical taxable income and projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessment, management determined that no valuation allowance is necessary. As of December 31, 2017, 2016 and 2015, the Corporation did not have any unrecognized tax benefits. The Corporation accounts for interest and penalties related to uncertain tax positions as part of its provision for Federal and State income taxes. As of December 31, 2017, 2016 and 2015, the Corporation did not accrue any interest or penalties related to its uncertain tax positions. The Corporation is not currently subject to examinations by Federal taxing authorities for the years prior to 2014 and for New York State taxing authorities for the years prior to 2014.

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