(11) Income Taxes

The provision (benefit) for income taxes for the years ended December 31, 2015, 2014 and 2013 consists of the following (in thousands):


	Years Ended December 31,
	2015		2014		2013
Current:
Federal	$	8,378	$	9,525	$	9,039
State		1,064		1,004		1,324

Total current		9,442		10,529		10,363

Deferred:
Federal		1,349		9		(1,421	)
State		92		73		(329	)

Total deferred		1,441		82		(1,750	)

	$	10,883	$	10,611	$	8,613

Included in other comprehensive income is income tax expense (benefit) attributable to net unrealized gains (losses) on securities available-for-sale arising during the year in the amount of $600,000, $(338,000), and $(4.6 million) for the years ended December 31, 2015, 2014 and 2013, respectively. Included in stockholders’ equity is income tax benefit (expense) attributable to stock plans in the amount of $32,000, $51,000, and $(31,000) for the years ended December 31, 2015, 2014 and 2013, respectively.

A reconciliation between the provision for income taxes and the expected amount computed by multiplying income before the provision for income taxes times the applicable statutory Federal income tax rate for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands):


	Years Ended December 31,
	2015			2014			2013

Income before provision for income taxes	$	31,205		$	30,531		$	24,943
Applicable statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
Computed “expected” Federal income tax expense	$	10,922		$	10,686		$	8,730
Increase (decrease) in Federal income tax expense resulting from:
Tax exempt interest		(291	)		(109	)		(61	)
ESOP fair market value adjustment		111			99			87
ESOP dividends		(234	)		(229	)		(233	)
Earnings on BOLI		(525	)		(517	)		(491	)
Merger related expenses		132			—			—
State income taxes net of Federal benefit		751			695			642
Other items, net		17			(14	)		(61	)

	$	10,883		$	10,611		$	8,613

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented in the following table (in thousands):


	December 31,
	2015			2014
Deferred tax assets:
Allowance for loan losses	$	6,847		$	6,668
Reserve for repurchased loans		403			422
Reserve for uncollected interest		382			449
Incentive compensation		1,245			1,273
Deferred compensation		644			605
Other reserves		95			43
Stock plans		1,894			1,517
ESOP		198			165
Intangible assets		—			22
Fair value adjustments related to acquisition		613			—
Net operating loss carryforward related to acquisition		2,177			—
Other real estate owned		128			379
Unrealized loss on securities		4,311			4,909
State alternative minimum tax		1,160			1,160

Total gross deferred tax assets		20,097			17,612

Deferred tax liabilities:
Core deposit intangible		(105	)		—
Excess servicing on sale of mortgage loans		(99	)		(136	)
Investments, discount accretion		(444	)		(435	)
Deferred loan and commitment costs, net		(1,224	)		(1,128	)
Premises and equipment, differences in depreciation		(237	)		(294	)
Undistributed REIT income		(1,181	)		—

Total gross deferred tax liabilities		(3,290	)		(1,993	)

Net deferred tax assets	$	16,807		$	15,619

At December 31, 2015, 2014 and 2013, the Company determined that it is not required to establish a valuation reserve for the remaining net deferred tax assets since it is “more likely than not” that the net deferred tax assets will be realized through future reversals of existing taxable temporary differences, future taxable income and tax planning strategies. The conclusion that it is “more likely than not” that the remaining net deferred tax assets will be realized is based on the history of earnings and the prospects for continued growth. Management will continue to review the tax criteria related to the recognition of deferred tax assets.

Retained earnings at December 31, 2015 includes approximately $10.8 million, for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to stockholders. At December 31, 2015, the Company had an unrecognized deferred tax liability of $4.4 million with respect to this reserve.

There were no unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013. The tax years that remain subject to examination by the Federal government include the year ended December 31, 2012 and forward. The tax years that remain subject to examination by the States of New Jersey and New York include the years ended December 31, 2011 and forward.