Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Income Tax Contingencies [Table Text Block]

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



(Dollars in thousands)	2017			2016
Uncertain tax positions, beginning of year	$	522		$	417
Gross increase based on tax positions related to current year	42			113
Gross increase for tax position taken during prior years	20			45
Gross decrease for tax positions taken during prior years	—			—
Gross decrease due to the statute of limitations	(34		)	(53		)
Uncertain tax positions, end of year	$	550		$	522

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:



(Dollars in thousands)	2017					2016					2015
	Amount			Rate		Amount			Rate		Amount			Rate
Income tax computed at statutory federal tax rate	$	20,045		35.0	%	$	15,785		35.0	%	$	5,051		34.1	%
Differences in rate resulting from:
Tax-exempt interest income	(1,092		)	(1.9	)%	(1,170		)	(2.6	)%	(1,109		)	(7.5	)%
Investments in tax credit funds	(221		)	(0.4	)%	(164		)	(0.4	)%	(123		)	(0.8	)%
Bank owned life insurance	(683		)	(1.2	)%	(495		)	(1.1	)%	(204		)	(1.4	)%
Other, net (1)	683			1.2	%	169			0.4	%	260			1.8	%
Income tax expense	$	18,732		32.7	%	$	14,125		31.3	%	$	3,875		26.2	%

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)	2017			2016			2015
Current income tax expense	$	21,511		$	16,587		$	5,457
Deferred income tax (benefit) expense	(2,779		)	(2,462		)	(1,582		)
Income tax expense	$	18,732		$	14,125		$	3,875

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)	2017		2016
Deferred tax assets:
Allowance for loan losses	$	6,992	$	12,578
Accrued employee benefits	2,569		3,826
Investments	1,560		2,884
Bank premises and equipment	—		349
Available-for-sale securities	555		—
Other	116		1,190
Gross deferred tax assets	$	11,792	$	20,827
Valuation allowance	805		1,341
Total deferred tax assets	$	10,987	$	19,486
Deferred tax liabilities:
Purchase accounting adjustments	$	6,092	$	10,845
Deferred loan income	2,459		3,181
Derivative instruments	300		—
Bank premises and equipment	307		—
Available-for-sale investment securities	—		312
Other	484		1,305
Total deferred tax liabilities	$	9,642	$	15,643
Net deferred tax asset	$	1,345	$	3,843