Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Provision for Federal and State Income Taxes

The provision for federal and state income taxes included in the accompanying consolidated statements of income consists of the following:

	For the Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Current:
Federal	$	9,273	$	2,400	$	5,113
State	961		539		829
Deferred:
Federal	7,350		909		3,877
State	133		33		(61		)
	$	17,717	$	3,881	$	9,758

Income Tax Provision Differences from Expected Statutory Provision

The provision for income taxes differs from the expected statutory provision as follows:

	For the Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Expected provision at statutory rate	35.0	%	35.0	%	35.0	%
Difference resulting from:
Tax exempt interest income, net of disallowance	(6.1	)	(15.6	)	(9.5	)
Increase in value of bank owned life insurance assets	(2.2	)	(4.2	)	(1.2	)
Stock-based compensation	(1.0	)	(1.7	)	0.5
Non-deductible merger-related expenses	—		1.2		0.4
State income taxes, net of federal benefits	1.2		(1.5	)	0.9
Adjustment to deferred tax assets and liabilities for enacted changes in tax laws and rates	1.7		—		—
Changes in valuation allowance	0.5		3.1		0.4
Other	(0.4	)	0.3		(0.1	)
Effective tax rate	28.7	%	16.6	%	26.4	%

Components of Deferred Tax Assets and Liabilities

The assets and liabilities giving rise to the Corporation’s deferred tax assets and liabilities are as follows:

	At December 31,
(Dollars in thousands)	2017			2016
Deferred tax assets:
Allowance for loan and lease losses	$	4,643		$	5,984
Deferred compensation	2,110			2,541
Actuarial adjustments on retirement benefits*	4,432			7,714
State net operating losses	4,166			2,725
Other-than-temporary impairments on equity securities	148			331
Net unrealized holding losses on securities available-for-sale and swaps*	1,316			2,762
Other deferred tax assets	1,243			5,712
Gross deferred tax assets	18,058			27,769
Valuation allowance	(3,523		)	(2,341		)
Total deferred tax assets, net of valuation allowance	14,535			25,428
Deferred tax liabilities:
Mortgage servicing rights	1,415			2,302
Retirement plans	4,304			6,265
Deferred loan fees and costs	2,614			615
Acquisition-related fair value adjustments	1,621			2,097
Intangible assets	1,513			1,491
Depreciation	1,102			1,401
Other deferred tax liabilities	792			1,692
Total deferred tax liabilities	13,361			15,863
Net deferred tax assets	$	1,174		$	9,565

*Represents the amount of deferred taxes recorded in accumulated other comprehensive income.