The provision (benefit) for income taxes for the years ended December 31, 2017, 2016, and 2015 consists of the following:

	For the Years Ended December 31,
	2017			2016			2015
Federal:
Current	$	1,062		$	642		$	91
Deferred		24			387			1,090
		1,086			1,029			1,181
State and local:
Current		402			237			122
Deferred		(1,670	)		(754	)		(722	)
		(1,268	)		(517	)		(600	)
Changes in valuation allowance		1,606			493			734
Provision (benefit) for income taxes	$	1,424		$	1,005		$	1,315

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% for 2017, 2016, and 2015 to income before income taxes as a result of the following:

Note 8. Income Taxes (Continued)

	For the Years Ended December 31,
	2017			2016			2015
Income tax, at federal rate	$	(1,007	)	$	826		$	1,303
State and local tax, net of federal taxes		(1,340	)		(341	)		(395	)
Valuation allowance, net of the federal benefit		1,606			493			734
Expense (benefit) due to enactment of federal tax reform		2,113			—			—
Other		52			27			(327	)
	$	1,424		$	1,005		$	1,315

On December 22, 2017, the U.S. Government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate income tax rate from 34% to 21%, but eliminates or increases certain permanent differences. As of the date of enactment, the Company has adjusted its deferred tax assets and liabilities for the new statutory rate, which resulted in a $2,113 income tax expense for the year ended December 31, 2017.

On December 22, 2017, the U.S. Securities and Exchange Commission (“SEC”) released Staff Accounting Bulletin No. 118 (“SAB 118”) to address any uncertainty or diversity of views in practice in accounting for the income tax effects of the Act in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete this accounting in the reporting period that includes the enactment date. SAB 118 allows for a measurement period, not to extend beyond one year from the Act’s enactment date, to complete the necessary accounting.

We recorded provisional amounts of deferred income taxes using reasonable estimates in two areas where the information necessary to complete the accounting was not available, prepared, or analyzed: 1) Our deferred tax liability for temporary differences between the tax and financial reporting bases of fixed assets principally due to the accelerated depreciation under the Act which allows for full expensing of qualified property purchased and placed into service after September 27, 2017; and 2) Our deferred tax asset for temporary differences associated with accrued compensation is awaiting final determinations of amounts that will be paid and deducted on the 2017 income tax returns.

In a third area, we made no adjustments to deferred tax assets representing future deductions for accrued compensation that may be subject to new limitations under Internal Revenue Code Section 162(m) which, generally, limits the annual deduction for certain compensation paid to certain employees to $1 million. As of the report filing date, there is uncertainty regarding how the newly-enacted rules in this area apply to existing contracts. Consequently, we are seeking further clarification of these matters before completing our analysis.

We will complete and record the income tax effects of these provisional items during the period the necessary information becomes available. This measurement period will not extend beyond December 22, 2018.

Management maintains a valuation allowance against its net New York State and New York City deferred tax as it is unlikely these deferred tax assets will impact the Company's tax liability in future years.

Management has determined that it is not required to establish a valuation allowance against any other deferred tax asset in accordance with GAAP since it is more likely than not that the deferred tax assets will be fully utilized in future periods. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income, and the projected future taxable income over the periods that the temporary differences comprising the deferred tax assets will be deductible.

At December 31, 2017 and 2016, the Company had no unrecognized tax benefits recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Company recognizes interest and penalties on unrecognized tax benefits as a component of income tax expense.

Note 8. Income Taxes (Continued)

The Company is subject to U.S. federal income tax, New York State income tax, New Jersey income tax, and New York City income tax. The Company is no longer subject to examination by taxing authorities for years before 2014.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are presented below:

	At December 31,
	2017		2016
Deferred tax assets:
Allowance for losses on loans	$	3,444	$	4,352
Pension obligations		2,402		3,134
Interest on nonaccrual loans		415		525
Unrealized loss on available-for-sale securities		72		86
Amortization of intangible assets		120		219
Deferred rent payable		194		212
Net Operating Losses		2,444		1,340
Charitable contribution carryforward		1,840		—
Other		162		20
Total gross deferred tax assets		11,093		9,888
Deferred tax liabilities:
Cumulative contribution in excess of net periodic benefit costs, net		3,134		4,313
Depreciation and amortization of premises and equipment		601		426
Deferred loan fees		317		303
Other		18		17
Total gross deferred tax liabilities		4,070		5,059
Valuation allowance		3,114		1,450
Net deferred tax assets	$	3,909	$	3,379

The deferred tax expense (benefit) has been allocated between operations and equity as follows:

	For the Years Ended December 31,
	2017			2016		2015
Equity	$	746		$	260	$	320
Operations		(1,276	)		126		1,086
	$	(530	)	$	386	$	1,406