Income Tax Expense

12 Months Ended

Dec. 31, 2015

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,	2015			2014		2013
Current tax expense:
Federal		$17,864			$16,286		$13,518
State	1,194			866		742
Total current tax expense	19,058			17,152		14,260
Deferred tax expense (benefit):
Federal	2,003			1,820		2,300
State	(183		)	27		(33		)
Total deferred tax expense	1,820			1,847		2,267
Total income tax expense		$20,878			$18,999		$16,527

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,	2015			2014			2013
Tax expense at Federal statutory rate		$22,520			$20,938			$18,438
(Decrease) increase in taxes resulting from:
Tax-exempt income	(1,604		)	(1,540		)	(1,408		)
Dividends received deduction	(57		)	(29		)	—
BOLI	(694		)	(646		)	(648		)
Federal tax credits	(364		)	(364		)	(364		)
Acquisition related expenses	318			—			—
State income tax expense, net of federal income tax benefit	658			581			461
Other	101			59			48
Total income tax expense		$20,878			$18,999			$16,527

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

(Dollars in thousands)
December 31,	2015			2014
Deferred tax assets:
Allowance for loan losses		$10,015			$10,116
Defined benefit pension obligations	3,447			6,719
Deferred compensation	3,181			2,761
Deferred loan origination fees	2,001			1,822
Stock based compensation	1,772			1,676
Other	3,547			3,026
Deferred tax assets	23,963			26,120
Deferred tax liabilities:
Net unrealized gains on securities available for sale	(617		)	(2,373		)
Amortization of intangibles	(4,240		)	(1,750		)
Deferred loan origination costs	(5,089		)	(4,694		)
Loan servicing rights	(1,238		)	(1,078		)
Other	(1,009		)	(1,206		)
Deferred tax liabilities	(12,193		)	(11,101		)
Net deferred tax asset		$11,770			$15,019

The Corporation’s net deferred tax asset is included in other assets in the Consolidated Balance Sheets. Management 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, 2015 and 2014.

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 2012.