INCOME TAXES

The following temporary differences gave rise to the net deferred tax asset position at December 31, 2014 and 2013:



(In Thousands)	2014		2013
Deferred tax assets:
Allowance for loan losses	$	3,380	$	3,167
Deferred compensation	1,579		1,459
Pension	2,172		1,336
Loan fees and discounts	256		—
Investment securities allowance	487		689
Unrealized loss on available for sale securities	—		1,118
Low income housing credit carryforward	2,034		2,803
Capital loss carryforward	98		103
Other	1,578		1,214
Total	11,584		11,889
Deferred tax liabilities:
Unrealized gain on available for sale securities	1,510		—
Bond accretion	262		207
Loan fees and discounts	—		49
Depreciation	734		842
Amortization	977		902
Total	3,483		2,000
Deferred tax asset, net	$	8,101	$	9,889

The current low income housing credit carryforward will expire in twelve years. The current capital loss carryforward will expire in three years. The Company fully anticipates being able to use the carry-forwards.

No valuation allowance was established at December 31, 2014 and 2013, because of the Company’s ability to carry back capital losses to recover taxes paid in previous years and certain tax strategies, together with the anticipated future taxable income as evidenced by the Company’s earning potential. The Corporation is no longer subject to federal, state, and local examinations by tax authorities for years before 2011.

The provision or benefit for income taxes is comprised of the following for the year ended December 31, 2014, 2013, and 2012:



(In Thousands)	2014		2013		2012
Currently payable	$	3,680	$	3,328	$	2,726
Deferred benefit (provision)	124		123		(128		)
Total provision	$	3,804	$	3,451	$	2,598

A reconciliation between the expected income tax or benefit and the effective income tax rate on income before income tax provision or benefit follows for the year ended December 31, 2014, 2013, and 2012:



	2014					2013					2012
(In Thousands)	Amount			%		Amount			%		Amount			%
Provision at expected rate	$	6,260		34.00	%	$	5,962		34.00	%	$	5,592		34.00	%
(Decrease) increase in tax resulting from:
Tax-exempt income	(1,673		)	(9.09	)	(1,933		)	(11.02	)	(2,235		)	(13.59	)
Tax credits	(737		)	(4.00	)	(737		)	(4.20	)	(737		)	(4.48	)
Other, net	(46		)	(0.25	)	159			0.90		(22		)	(0.13	)
Effective income tax provision and rate	$	3,804		20.66	%	$	3,451		19.68	%	$	2,598		15.80	%