Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Income Tax Contingencies [Table Text Block]

The following table provides a reconciliation of uncertain tax positions at December 31:



(Dollars in thousands)	2015			2014
Uncertain tax positions, beginning of year	$	240		$	30
Gross increase based on tax positions related to current year	182			178
Gross increase for tax position taken during prior years	—			33
Gross decrease for tax positions taken during prior years	(2		)	—
Gross decrease due to the statute of limitations	(3		)	(1		)
Uncertain tax positions, end of year	$	417		$	240

Schedule of Effective Income Tax Rate Reconciliation

The reported income tax expense and effective tax rate in the Consolidated Statements of Income differs from the amounts computed by applying the statutory corporate tax rate as follows for the years ended December 31:



	2015					2014					2013
(Dollars in thousands)	Amount			Rate		Amount			Rate		Amount			Rate
Income tax computed at statutory federal tax rate	$	5,051		34.1	%	$	8,462		35.0	%	$	10,179		35.0	%
Differences in rate resulting from:
Tax-exempt interest income	(1,109		)	(7.5	)%	(726		)	(3.0	)%	(645		)	(2.2	)%
Investments in tax credit funds	(123		)	(0.8	)%	(481		)	(2.0	)%	(314		)	(1.1	)%
Bank owned life insurance	(204		)	(1.4	)%	(37		)	—	%	2,183			7.5	%
Other, net	260			1.8	%	276			1.0	%	107			0.4	%
Income tax expense	$	3,875		26.2	%	$	7,494		31.0	%	$	11,510		39.6	%

Schedule of Components of Income Tax Expense (Benefit)

Peoples' reported income tax expense consisted of the following for the years ended December 31:



(Dollars in thousands)	2015			2014		2013
Current income tax expense	$	5,457		$	3,659	$	6,883
Deferred income tax (benefit) expense	(1,582		)	3,835		4,627
Income tax expense	$	3,875		$	7,494	$	11,510

Schedule of Deferred Tax Assets and Liabilities

The significant components of Peoples' deferred tax assets and liabilities consisted of the following at December 31:



(Dollars in thousands)	2015		2014
Deferred tax assets:
Allowance for loan losses	$	12,144	$	10,493
Bank premises and equipment	1,060		—
Available-for-sale securities	—		—
Investments	1,842		1,956
Accrued employee benefits	2,748		2,662
Other	3,803		1,146
Gross deferred tax assets	$	21,597	$	16,257
Valuation allowance	605		—
Total deferred tax assets	$	20,992	$	16,257
Deferred tax liabilities:
Purchase accounting adjustments	11,342		6,316
Available-for-sale securities	1,544		1,368
Bank premises and equipment	—		2,470
Deferred loan income	2,260		1,924
Other	664		684
Total deferred tax liabilities	$	15,810	$	12,762
Net deferred tax asset	$	5,182	$	3,495