Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

The following is a summary of income tax expense for the years ended December 31, 2016, 2015, and 2014:

	2016			2015		2014
Current – federal	$	6,181		$	7,777	$	8,471
Current – state		(33	)		139		110
Deferred – federal		1,023			376		733
Income tax expense	$	7,171		$	8,292	$	9,314

Components of Net Deferred Tax Asset

The components of the net deferred tax asset as of December 31, 2016 and 2015 are as follows:

	2016		2015
Deferred tax assets:
Allowance for loan losses	$	4,679	$	4,799
Fair value adjustments – business combination		2,530		1,661
Deferred compensation		2,891		2,443
Impaired security valuation		261		497
Net operating loss carryover		627		1,137
Post-retirement benefits		1,688		1,562
Unrealized loss on interest rate swap		161		258
Nonaccrual loan interest		649		762
Accrued expenses		1,282		1,072
Deferred fees and costs		629		388
Other		465		442
		15,862		15,021
Deferred tax liabilities:
Unrealized gain on securities available for sale		750		1,900
Premises and equipment		2,258		1,737
Intangibles – section 197		4,735		4,558
Mortgage servicing rights		487		337
Other		23		19
		8,253		8,551
Net deferred tax asset	$	7,609	$	6,470

Reconciliation of Income Tax Attributable to Pre-Tax Income at Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

	2016			%			2015			%			2014			%
Tax at statutory rate	$	9,699			35.0		$	10,671			35.0		$	11,336			35.0
Tax exempt income, net		(2,054	)		(7.4	)		(1,816	)		(6.0	)		(1,684	)		(5.2	)
Bank owned life insurance		(379	)		(1.3	)		(418	)		(1.4	)		(364	)		(1.1	)
Merger costs		170			0.6			30			0.1			0			0.0
Other		(265	)		(1.0	)		(175	)		(0.5	)		26			0.1
Income tax expense	$	7,171			25.9		$	8,292			27.2		$	9,314			28.8