Income Taxes

At December 31, 2017 and 2016, the Company had $5.3 million and $1.8 million in total taxes receivable, respectively, included in "Other assets" in the Consolidated Balance Sheets. The Company realized $3.5 million, $3.5 million, and $2.4 million in tax credits related to its investments in low income housing tax credit partnerships for 2017, 2016, and 2015 respectively.

Components of the provision for income taxes are as follows:



(In Thousands)	Current Tax Expense (Benefit)		Deferred Expense (Benefit)			Total Expense
2017:
Federal		$2,618		$3,658			$6,276
State	1,423		346			1,769
Amortization of investment in low income housing tax credit partnerships	2,276		—			2,276
Total		$6,317		$4,004			$10,321
2016:
Federal		$2,874		($281	)		$2,593
State	674		(83		)	591
Amortization of investment in low income housing tax credit partnerships	2,868		—			2,868
Total		$6,416		($364	)		$6,052
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

The actual expense for 2017, 2016, and 2015, differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2017, 2016, and 2015) as follows:



(In Thousands)	2017			2016			2015
Computed “expected” income tax expense		$8,330			$7,365			$9,491
State income taxes, net	1,225			384			794
Tax-exempt interest on investment securities	(597		)	(566		)	(507		)
Amortization of investment in low income housing tax credit partnerships	2,276			2,868			2,684
Low income housing credits	(3,468		)	(3,540		)	(2,446		)
Revaluation of deferred tax assets	2,678			—			—
Other	(123		)	(459		)	(1,232		)
Total		$10,321			$6,052			$8,784

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



(In Thousands)	2017			2016			2015
Deferred Tax Asset:
Allowance for loan losses		$5,922			$7,717			$7,082
Loan fees, net of costs	825			1,823			1,896
Other real estate owned	160			123			46
Deferred compensation	1,218			2,112			2,005
Net operating loss carryforwards	—			—			73
Equity compensation	422			544			578
Loan discount	171			326			476
Fair market value adjustment on certificates of deposit	147			247			283
Unrealized loss on available for sale investment securities, net	59			195			235
Other	693			1,455			1,380
Total Deferred Tax Asset		$9,617			$14,542			$14,054

Deferred Tax Liability:
Intangible amortization		($219	)		($2,804	)		($2,494	)
Mortgage servicing rights	(2,156		)	(415		)	(415		)
Depreciation and amortization	(404		)	31			(64		)
FHLB stock repurchase and dividends	(179		)	(686		)	(686		)
Other	(399		)	(404		)	(456		)
Total Deferred Tax Liability		($3,357	)		($4,278	)		($4,115	)
Net Deferred Tax Asset		$6,260			$10,264			$9,939

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. The primary source of recovery of the deferred tax asset will be future taxable income. Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax asset. The deferred tax asset is included in "Other assets" in the Consolidated Balance Sheets.

As of December 31, 2017, the Company had no unrecognized tax benefits. There were no amounts related to interest and penalties recognized for the years ended December 31, 2017, 2016, and 2015. The tax years subject to examination by federal and state taxing authorities are the years ending December 31, 2017, 2016, 2015, and 2014.