Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Expense

The Company files a consolidated federal income tax return. Income tax expense is comprised of the following (dollars in thousands):

	Year Ended December 31,
	2014			2013		2012
Current federal income tax	$	29,832		$	24,931	$	23,605
Current state income tax		94			15		13
Deferred federal income tax expense (benefit)		(893	)		754		1,517
Income tax expense	$	29,033		$	25,700	$	25,135

Percentage of Pretax Earnings, Differs from Statutory Federal Income Tax Rate

Income tax expense, as a percentage of pretax earnings, differs from the statutory federal income tax rate as follows:

	As a Percent of Pretax Earnings
	2014			2013			2012
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Reductions in tax rate resulting from interest income exempt from federal income tax		(10.6	)		(10.5	)		(9.7	)
Effect of state income tax		0.1			—			0.1
ESOP tax credit		(0.2	)		(0.2	)		(0.3	)
Other		0.2			0.3			0.2
Effective income tax rate		24.5	%		24.6	%		25.3	%

Schedule of Deferred Tax Assets and Liabilities

The approximate effects of each type of difference that gave rise to the Company’s deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows (dollars in thousands):

	2014			2013
Deferred tax assets:
Tax basis of loans in excess of financial statement basis	$	13,876		$	12,904
Minimum liability in defined benefit plan		1,440			2,328
Recognized for financial reporting purposes but not for tax purposes:
Deferred compensation		2,423			2,213
Write-downs and adjustments to other real estate owned and repossessed assets		78			174
Other deferred tax assets		350			322
Total deferred tax assets		18,167			17,941
Deferred tax liabilities:
Financial statement basis of fixed assets in excess of tax basis		5,311			5,567
Intangible asset amortization deductible for tax purposes, but not for financial reporting purposes		11,704			10,277
Recognized for financial reporting purposes but not for tax purposes:
Accretion on investment securities		1,679			1,678
Pension plan contributions		1,414			2,309
Net unrealized gain on investment securities available-for-sale		27,010			7,909
Other deferred tax liabilities		310			366
Total deferred tax liabilities		47,428			28,106
Net deferred tax asset (liability)	$	(29,261	)	$	(10,165	)