Income Taxes

The components of the Provision for income taxes for the years ended December 31, were as follows:



	2015		2014			2013
	(Dollars in thousands)
Current tax provision	$	1,838	$	2,010		$	1,281
Deferred tax provision (benefit)	341		(37		)	581
	$	2,179	$	1,973		$	1,862

The total provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 34% primarily due to the following for the years ended December 31:



	2015			2014			2013
	(Dollars in thousands)
Computed “expected” tax expense	$	3,419		$	3,287		$	3,059
Tax exempt interest	(613		)	(560		)	(496		)
Increase in cash surrender value of COLI	(96		)	(42		)	(44		)
Tax credits	(564		)	(735		)	(675		)
Other	33			23			18
	$	2,179		$	1,973		$	1,862

Listed below are the significant components of the net deferred tax asset at December 31:



	2015			2014
	(Dollars in thousands)
Components of the deferred tax asset
Bad debts	$	1,768		$	1,517
Deferred compensation	338			360
Net pension liability	470			246
Core deposit intangible	89			69
Limited partnership investments	91			75
Unrealized loss on investment securities available-for-sale	14			—
Other	164			264
Total deferred tax asset	2,934			2,531

Components of the deferred tax liability
Depreciation	(819		)	(559		)
Mortgage servicing rights	(519		)	(461		)
Unrealized gain on investment securities available-for-sale	—			(99		)
Goodwill	(231		)	(181		)
Total deferred tax liability	(1,569		)	(1,300		)
Net deferred tax asset	$	1,365		$	1,231

Deferred tax assets are recognized subject to management's judgment that it is more likely than not that the deferred tax asset will be realized. Based on the temporary taxable items, historical taxable income and estimates of future taxable income, the Company believes that it is more likely than not that the deferred tax assets at December 31, 2015 will be realized and therefore no valuation allowance is warranted.

Net deferred income tax assets are included in Other assets in the consolidated balance sheet at December 31, 2015 and 2014.

Based on management's evaluation, management has concluded that there were no significant uncertain tax positions requiring recognition in the Company's financial statements at December 31, 2015 and 2014. The Company's 2011 corporate tax return was audited by the IRS during 2013. There was no material adjustment to the Company's tax liability as a result of the audit. The Company's tax years ended December 31, 2012 through 2014 are open to examination by the IRS under the applicable statute of limitations. The 2015 tax return has not yet been filed.

The Company may from time to time be assessed interest and/or penalties by federal or state tax jurisdictions, although any such assessments historically have been minimal and immaterial to the Company's financial results. In the event that the Company receives an assessment for interest and/or penalties, it will be classified in the financial statements as Other expenses.