Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components Of The Provision For Income Taxes

Components of the provision for income taxes are as follows:



(In Thousands)	Current Tax Expense (Benefit)		Deferred Expense(Benefit)			Total Expense
2015:
Federal		$4,752		$127			$4,879
State	1,200		21			1,221
Amortization of investment in low income housing tax credit partnerships	2,684		—			2,684
Total		$8,636		$148			$8,784
2014:
Federal		$6,589		($1,117	)		$5,472
State	1,558		(194		)	1,364
Amortization of investment in low income housing tax credit partnerships	1,337		—			1,337
Total		$9,484		($1,311	)		$8,173
2013:
Federal		$3,227		$1,034			$4,261
State	835		181			1,016
Amortization of investment in low income housing tax credit partnerships	969		—			969
Total		$5,031		$1,215			$6,246

Reconciliation Of Actual To Expected Tax Expense

The actual expense for 2015, 2014, and 2013, differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2015, 2014, and 2013) as follows:



(In Thousands)	2015			2014			2013
Computed “expected” income tax expense		$8,552			$8,646			$6,192
State income taxes, net	794			886			660
Non-deductible merger expenses	—			130			—
Tax-exempt interest on investment securities	(507		)	(415		)	(461		)
Tax-exempt gain on purchase of mortgage affiliate	—			(1,050		)	—
Amortization of investment in low income housing tax credit partnerships	2,684			1,337			969
Low income housing credits	(2,446		)	(1,298		)	(955		)
Other	(293		)	(63		)	(159		)
Total		$8,784			$8,173			$6,246

Components Of Net Deferred Tax Asset

The components of the net deferred tax asset are as follows:



(In Thousands)	2015			2014			2013
Deferred Tax Asset:
Allowance for loan losses		$7,082			$5,900			$6,543
Loan fees, net of costs	1,896			1,871			1,653
Depreciation and amortization	(64		)	(60		)	446
Other real estate owned	46			50			174
Deferred compensation	2,005			1,691			1,665
Net operating loss carryforwards	73			589			—
Equity compensation	578			502			507
Loan discount	476			1,003			—
Fair market value adjustment on certificates of deposit	283			321			—
Other	1,380			1,636			1,122
Total Deferred Tax Asset		$13,755			$13,503			$12,110

Deferred Tax Liability:
Unrealized gain on available-for-sale investment securities		$235			($173	)		($451	)
Intangible amortization	(2,494		)	(2,206		)	(1,949		)
Mortgage servicing rights	(415		)	—			—
FHLB stock repurchase and dividends	(686		)	(306		)	(348		)
Other	(456		)	(731		)	(586		)
Total Deferred Tax Liability		($3,816	)		($3,416	)		($3,334	)
Net Deferred Tax Asset		$9,939			$10,087			$8,776