Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Income Tax Contingencies [Table Text Block]

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



(Dollars in thousands)	2016			2015
Uncertain tax positions, beginning of year	$	417		$	240
Gross increase based on tax positions related to current year	113			182
Gross increase for tax position taken during prior years	45			—
Gross decrease for tax positions taken during prior years	—			(2		)
Gross decrease due to the statute of limitations	(53		)	(3		)
Uncertain tax positions, end of year	$	522		$	417

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:



	2016					2015					2014
(Dollars in thousands)	Amount			Rate		Amount			Rate		Amount			Rate
Income tax computed at statutory federal tax rate	$	15,785		35.0	%	$	5,051		34.1	%	$	8,462		35.0	%
Differences in rate resulting from:
Tax-exempt interest income	(1,170		)	(2.6	)%	(1,109		)	(7.5	)%	(726		)	(3.0	)%
Investments in tax credit funds	(164		)	(0.4	)%	(123		)	(0.8	)%	(481		)	(2.0	)%
Bank owned life insurance	(495		)	(1.1	)%	(204		)	(1.4	)%	(37		)	—	%
Other, net	169			0.4	%	260			1.8	%	276			1.0	%
Income tax expense	$	14,125		31.3	%	$	3,875		26.2	%	$	7,494		31.0	%

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)	2016			2015			2014
Current income tax expense	$	16,587		$	5,457		$	3,659
Deferred income tax (benefit) expense	(2,462		)	(1,582		)	3,835
Income tax expense	$	14,125		$	3,875		$	7,494

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)	2016		2015
Deferred tax assets:
Allowance for loan losses	$	12,578	$	12,144
Accrued employee benefits	3,826		3,763
Investments	2,884		2,447
Bank premises and equipment	349		1,060
Other	1,190		2,183
Gross deferred tax assets	$	20,827	$	21,597
Valuation allowance	1,341		605
Total deferred tax assets	$	19,486	$	20,992
Deferred tax liabilities:
Purchase accounting adjustments	$	10,845	$	11,342
Deferred loan income	3,181		2,260
Available-for-sale securities	312		1,544
Other	1,305		664
Total deferred tax liabilities	$	15,643	$	15,810
Net deferred tax asset	$	3,843	$	5,182