Income Tax Expense

12 Months Ended

Dec. 31, 2016

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,	2016		2015			2014
Current tax expense:
Federal		$19,444		$17,864			$16,286
State	2,061		1,194			866
Total current tax expense	21,505		19,058			17,152
Deferred tax expense (benefit):
Federal	796		2,003			1,820
State	72		(183		)	27
Total deferred tax expense	868		1,820			1,847
Total income tax expense		$22,373		$20,878			$18,999

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,	2016			2015			2014
Tax expense at Federal statutory rate		$24,099			$22,520			$20,938
(Decrease) increase in taxes resulting from:
Tax-exempt income	(1,599		)	(1,604		)	(1,540		)
Dividends received deduction	(58		)	(57		)	(29		)
BOLI	(930		)	(694		)	(646		)
Federal tax credits	(364		)	(364		)	(364		)
Change in fair value of contingent consideration	(314		)	—			—
Acquisition related expenses	—			318			—
State income tax expense, net of federal income tax benefit	1,387			658			581
Other	152			101			59
Total income tax expense		$22,373			$20,878			$18,999

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,	2016			2015
Deferred tax assets:
Allowance for loan losses		$9,621			$10,015
Defined benefit pension obligations	3,804			3,447
Deferred compensation	3,991			3,181
Deferred loan origination fees	1,999			2,001
Stock based compensation	1,519			1,772
Net unrealized losses on securities available for sale	4,008			—
Other	3,495			3,547
Deferred tax assets	28,437			23,963
Deferred tax liabilities:
Net unrealized gains on securities available for sale	—			(617		)
Amortization of intangibles	(3,765		)	(4,240		)
Deferred loan origination costs	(5,156		)	(5,089		)
Loan servicing rights	(1,293		)	(1,238		)
Other	(1,419		)	(1,009		)
Deferred tax liabilities	(11,633		)	(12,193		)
Net deferred tax asset		$16,804			$11,770

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, 2016 and 2015.

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 2013.