Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The provision for federal and state income taxes included in the accompanying consolidated statements of income consists of the following:

The provision for income taxes differs from the expected statutory provision as follows:



	For the Years Ended December 31,
(Dollars in thousands)	2015		2014		2013
Expected provision at statutory rate	35.0	%	35.0	%	35.0	%
Difference resulting from:
Tax exempt interest income	(9.5	)	(11.2	)	(11.7	)
Increase in value of bank owned life insurance assets	(1.2	)	(1.9	)	(3.9	)
Retirement plans	1.9		—		2.6
Other, including state income taxes, valuation allowances and rate differentials	0.2		3.2		0.8
	26.4	%	25.1	%	22.8	%

The assets and liabilities giving rise to the Corporation’s deferred tax assets and liabilities are as follows:



	At December 31,
(Dollars in thousands)	2015			2014
Deferred tax assets:
Loan and lease loss	$	6,012		$	7,358
Deferred compensation	2,483			2,492
Actuarial adjustments on retirement benefits*	8,525			8,625
State net operating losses	1,986			1,621
Other-than-temporary impairments on equity securities	317			577
Alternative minimum tax credits**	2,156			1,067
Net unrealized holding losses on securities available-for-sale and swaps*	472			—
Other	1,150			1,125
Gross deferred tax assets	23,101			22,865
Valuation allowance	(1,609		)	(1,461		)
Total deferred tax assets, net of valuation allowance	21,492			21,404
Deferred tax liabilities:
Market discount	2,481			2,224
Retirement plans	7,169			5,700
Intangible assets	1,663			2,308
Net unrealized holding gains on securities available-for-sale and swaps*	—			837
Total deferred tax liabilities	11,313			11,069
Net deferred tax assets	$	10,179		$	10,335

*Represents the amount of deferred taxes recorded in accumulated other comprehensive loss.

** The alternative minimum tax credits have an indefinite life.