Income Tax Expense

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Expense

Income Tax Expense

The following table presents the components of income tax expense:

(Dollars in thousands)
Years ended December 31,	2014		2013			2012
Current tax expense:
Federal		$16,286		$13,518			$13,937
State	866		742			533
Total current tax expense	17,152		14,260			14,470
Deferred tax expense (benefit):
Federal	1,820		2,300			1,310
State	27		(33		)	18
Total deferred tax expense	1,847		2,267			1,328
Total income tax expense		$18,999		$16,527			$15,798

Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes.  The following table presents the reasons for the differences:

(Dollars in thousands)
Years ended December 31,	2014			2013			2012
Tax expense at Federal statutory rate		$20,938			$18,438			$17,805
(Decrease) increase in taxes resulting from:
Tax-exempt income	(1,540		)	(1,408		)	(1,220		)
Dividends received deduction	(29		)	—			(12		)
BOLI	(646		)	(648		)	(857		)
Federal tax credits	(364		)	(364		)	(364		)
State income tax expense, net of federal income tax benefit	581			461			358
Other	59			48			88
Total income tax expense		$18,999			$16,527			$15,798

The following table presents the approximate tax effects of temporary differences that give rise to gross deferred tax assets and gross deferred tax liabilities:

(Dollars in thousands)
December 31,	2014			2013
Gross deferred tax assets:
Allowance for loan losses		$10,116			$10,033
Defined benefit pension obligations	6,719			3,544
Deferred compensation	2,761			2,545
Deferred loan origination fees	1,822			1,593
Stock based compensation	1,676			1,686
Other	3,026			3,591
Gross deferred tax assets	26,120			22,992
Gross deferred tax liabilities:
Net unrealized gains on securities available for sale	(2,373		)	(1,791		)
Amortization of intangibles	(1,750		)	(1,977		)
Deferred loan origination costs	(4,694		)	(3,697		)
Loan servicing rights	(1,078		)	(971		)
Other	(1,206		)	(1,805		)
Gross deferred tax liabilities	(11,101		)	(10,241		)
Net deferred tax asset		$15,019			$12,751

The Corporation has determined that a valuation allowance is not required for any of the deferred tax assets since it is more-likely-than-not that these assets will be realized primarily through future reversals of existing taxable temporary differences, carryback to taxable income in prior years or by offsetting projected future taxable income.

The Corporation had no unrecognized tax benefits as of December 31, 2014 and 2013.

The Corporation files income tax returns in the U.S. federal jurisdiction and various state jurisdictions.  The Corporation is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2011.