INCOME TAX (FY) (Tables)

12 Months Ended

Dec. 31, 2016

Composition of income tax expense (benefit)

The composition of income tax expense for the years ended December 31 follows:

	2016		2015		2014
	(In thousands)
Current expense (benefit)	$	362	$	200	$	(359	)
Deferred expense		9,756		9,128		7,672
Valuation allowance - change in estimate		17		35		(118	)
Income tax expense	$	10,135	$	9,363	$	7,195

Reconciliation of income tax benefit computed by applying the statutory federal income tax rate

A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate of 35% in each year presented to the income before income tax for the years ended December 31 follows:

	2016			2015			2014
	(In thousands)
Statutory rate applied to income before income tax	$	11,515		$	10,283		$	8,826
Tax-exempt income		(534	)		(434	)		(522	)
Bank owned life insurance		(477	)		(449	)		(480	)
Share-based compensation		(348	)		—			—
Unrecognized tax benefit		(155	)		(135	)		(595	)
Non-deductible meals, entertainment and memberships		46			43			53
Net change in valuation allowance		17			35			(118	)
Other, net		71			20			31
Income tax expense	$	10,135		$	9,363		$	7,195

Summary of deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow:

	2016		2015
	(In thousands)
Deferred tax assets
Loss carryforwards	$	17,131	$	25,516
Allowance for loan losses		7,104		7,901
Alternative minimum tax credit carry forward		4,064		3,427
Property and equipment		3,143		3,369
Unrealized loss on securities available for sale		1,782		128
Purchase premiums, net		1,460		1,755
Share based payments		1,011		786
Litigation settlement		805		—

	2016			2015
	(In thousands)
Vehicle service contract counterparty contingency reserve		500			21
Unrealized loss on trading securities		486			578
Other than temporary impairment charge on securities available for sale		400			382
Deferred compensation		375			404
Valuation allowance on other real estate		277			592
Non accrual loan interest income		246			232
Reserve for unfunded lending commitments		228			228
Loss reimbursement on sold loans reserve		196			186
Other		1			—
Gross deferred tax assets		39,209			45,505
Valuation allowance		(1,071	)		(1,054	)
Gross deferred tax assets, net of valuation allowance		38,138			44,451
Deferred tax liabilities
Capitalized mortgage loan servicing rights		4,785			4,353
Deferred loan fees		490			256
Federal Home Loan Bank stock		45			45
Other		—			162
Gross deferred tax liabilities		5,320			4,816
Deferred tax assets, net	$	32,818		$	39,635

Schedule of federal net operating loss forwards

At December 31, 2016, we had federal NOL carryforwards of approximately $46.0 million which, if not used against taxable income, will expire as follows:

	(In thousands)
2031	$	8,301
2032		37,739
Total	$	46,040

Schedule of changes in unrecognized tax benefits

Changes in unrecognized tax benefits for the years ended December 31 follow:

	2016			2015			2014
	(In thousands)
Balance at beginning of year	$	976		$	1,091		$	1,672
Additions based on tax positions related to the current year		19			20			18
Reductions due to the statute of limitations		(155	)		(135	)		(595	)
Reductions due to settlements		—			—			(4	)
Balance at end of year	$	840		$	976		$	1,091