Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016		2015		2014
Current federal income tax	$	30,381	$	31,014	$	29,832
Current state income tax		99		103		94
Deferred federal income tax expense (benefit)		673		320		(893	)
Income tax expense	$	31,153	$	31,437	$	29,033

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
	2016			2015			2014
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Reductions in tax rate resulting from interest income exempt from federal income tax		(12.1	)		(11.4	)		(10.6	)
Effect of state income tax		0.1			0.1			0.1
ESOP tax deduction		(0.2	)		(0.2	)		(0.2	)
Other		0.1			0.3			0.2
Effective income tax rate		22.9	%		23.8	%		24.5	%

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, 2016 and 2015 are as follows (dollars in thousands):

	2016			2015
Deferred tax assets:
Tax basis of loans in excess of financial statement basis	$	17,006		$	16,326
Minimum liability in defined benefit plan		1,641			2,135
Recognized for financial reporting purposes but not yet for tax purposes:
Deferred compensation		2,807			2,602
Write-downs and adjustments to other real estate owned and repossessed assets		9			7
Other deferred tax assets		226			224
Total deferred tax assets		21,689			21,294
Deferred tax liabilities:
Financial statement basis of fixed assets in excess of tax basis		5,870			5,644
Intangible asset amortization deductible for tax purposes, but not for financial reporting purposes		15,191			13,881
Recognized for financial reporting purposes but not yet for tax purposes:
Accretion on investment securities		1,788			1,813
Pension plan contributions		1,799			1,761
Net unrealized gain on investment securities available-for-sale		11,573			27,655
Other deferred tax liabilities		83			71
Total deferred tax liabilities		36,304			50,825
Net deferred tax asset (liability)	$	(14,615	)	$	(29,531	)