10.	Income Taxes

Current and deferred income tax expense (benefit) provided for the years ended December 31 consisted of the following:

(in thousands)	2016			2015		2014
Current
Federal	$	13,101		$	11,979	$	7,941
State		4,832			4,446		4,345
Total Current		17,933			16,425		12,286
Deferred
Federal		(1,607	)		383		3,116
State		(229	)		116		(308	)
Total Deferred		(1,836	)		499		2,808
Total Provision for Taxes	$	16,097		$	16,924	$	15,094

The total provision for income taxes differs from the federal statutory rate as follows:

	2016						2015						2014
(in thousands)	Amount			Rate			Amount			Rate			Amount			Rate
Tax Provision at Federal Statutory Rate	$	16,037			35.0	%	$	15,510			35.0	%	$	14,174			35.0	%
Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation		(675	)		(1.5	%)		(711	)		(1.6	%)		(805	)		(2.0	%)
State and Local Income Taxes, Net of Federal Income Tax Benefit		2,992			6.5	%		2,966			6.7	%		2,624			6.5	%
Bank Owned Life Insurance		(731	)		(1.6	%)		(712	)		(1.6	%)		(696	)		(1.7	%)
Low-Income Housing Tax Credit		(1,201	)		(2.6	%)		(291	)		(0.7	%)		(126	)		(0.3	%)
Bargain Purchase Gain		(641	)		(1.4	%)		-			0.0	%		-			0.0	%
Other, Net		316			0.7	%		162			0.4	%		(77	)		(0.2	%)
Total Provision for Taxes	$	16,097			35.1	%	$	16,924			38.2	%	$	15,094			37.3	%

The components of net deferred tax assets as of December 31 are as follows: The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company's Consolidated Balance Sheet.

(in thousands)	2016			2015
Deferred Tax Assets
Allowance for Credit Losses	$	20,260		$	17,529
Accrued Liabilities		9,807			8,614
Deferred Compensation		14,166			11,586
State Franchise Tax		1,680			1,549
Acquired Net Operating Loss		1,135			-
Fair Value Adjustment on Loans Acquired		429			-
Fair Value Adjustment on ORE Acquired		299			-
ORE Writedown and Holding Costs		-			1,547
Unrealized Loss on Securities Available-for-Sale		58			-
Low-Income Housing Investment		366			73
Other		233			46
Total Deferred Tax Assets	$	48,433		$	40,944
Deferred Tax Liabilities
Premises and Equipment		(1,707	)		(869	)
Securities Accretion		(341	)		(310	)
Unrealized Gain on Securities Available-for-Sale		-			(432	)
Leasing Activities		(14,868	)		(11,469	)
Core Deposit Intangible Asset		(398	)		-
Other		(808	)		(744	)
Total Deferred Tax Liabilities		(18,122	)		(13,824	)
Net Deferred Tax Assets	$	30,311		$	27,120

As a result of the recent acquisition of Delta National Bancorp, the Company has included in its deferred tax assets usable net operating loss carryforwards in the Federal and California jurisdictions of $2.7 million, which begin to expire in 2028. The amount of carryforwards that may be utilized in each jurisdiction annually is limited to approximately $141,000 per year under Section 382 of the Internal Revenue Code due to the changes in control. As a result of limitations under Section 382, certain net operating losses are expected to expire unused and have been excluded from the deferred tax asset. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are expected to be deductible, Management believes it is more likely than not we will realize the benefit of the remaining deferred tax assets. Accordingly, no other valuation allowance has been established as of December 31, 2016.

The Company and its subsidiaries file income tax returns in the U.S. federal and California jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2012.