Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Summary of Current and Deferred Components of Income Tax (Benefit) Expense

The current and deferred components of income tax (benefit) expense for the years ended December 31, are as follows:

	2016			2015			2014
(dollars in thousands)
Current expense:
Federal	$	3,875		$	3,393		$	3,981
State		439			399			498
Total current expense		4,314			3,792			4,479
Deferred (benefit) expense:
Federal		(4,450	)		(3,098	)		(3,179	)
State		(334	)		(161	)		(434	)
Valuation allowance		108			—			—
Total deferred benefit		(4,676	)		(3,259	)		(3,613	)
Provision for income taxes	$	(362	)	$	533		$	866

Income Tax Accounts Included in Other Assets

Income tax accounts included in other assets at December 31, are as follows:

	2016		2015
(dollars in thousands)
Currently receivable	$	633	$	1,217
Deferred income tax asset, net		43,129		40,157
Total	$	43,762	$	41,374

Summary of Differences between Income Tax (Benefit) Expense at the Statutory Federal Income Tax Rate and Total Income Tax Expense

Differences between income tax (benefit) expense at the statutory federal income tax rate and total income tax expense are summarized as follows:

	2016			2015			2014
(dollars in thousands)
Federal income tax expense at statutory rates	$	8,218		$	8,008		$	7,727
State income tax, net of federal income tax benefit		69			157			42
Insurance income		(406	)		(375	)		(353	)
Effect of tax-exempt interest		(8,259	)		(6,915	)		(6,097	)
Net tax credit		(395	)		(460	)		(517	)
Valuation allowance		108			—			—
Other		303			118			64
Total	$	(362	)	$	533		$	866
Effective tax rate		(1.50	)%		2.30	%		3.80	%

Gross Deferred Income Tax Assets and Gross Deferred Income Tax Liabilities

The following table sets forth the Company’s gross deferred income tax assets and gross deferred income tax liabilities at December 31:

	2016			2015
(dollars in thousands)
Deferred income tax assets:
Allowance for loan losses	$	10,419		$	9,852
AMT credit		10,234			7,041
Deferred compensation		9,684			8,495
Pension and SERP liability		7,658			8,714
Unrealized losses on securities transferred to held-to-maturity		3,161			4,667
Depreciation		968			673
Accrued bonus		612			508
Unrealized (gains) losses on securities available-for-sale		357			108
Charitable contributions carryforward		266			—
Acquisition premium		128			231
Nonaccrual interest		125			138
Limited partnerships		30			52
Investments write down		26			26
Other		220			173
Gross deferred income tax asset		43,888			40,678
Valuation allowance		(108	)		—
Gross deferred income tax asset,net of valuation allowance		43,780			40,678
Deferred income tax liabilities:
Mortgage servicing rights		(651	)		(521	)
Gross deferred income tax liability		(651	)		(521	)
Deferred income tax asset net	$	43,129		$	40,157