Income Taxes

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



	2016		2015		2014
	(Dollars in thousands)
Current tax provision	$	1,467	$	1,838	$	2,010
Deferred tax provision (benefit)	566		341		(37		)
	$	2,033	$	2,179	$	1,973

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:



	2016			2015			2014
	(Dollars in thousands)
Computed “expected” tax expense	$	3,585		$	3,419		$	3,287
Tax exempt interest	(596		)	(613		)	(560		)
Increase in cash surrender value of COLI	(115		)	(96		)	(42		)
Tax credits	(896		)	(564		)	(735		)
Other	55			33			23
	$	2,033		$	2,179		$	1,973

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



	2016			2015
	(Dollars in thousands)
Components of the deferred tax asset
Bad debts	$	1,813		$	1,768
Deferred compensation	334			338
Net pension liability	316			470
Core deposit intangible	110			89
Limited partnership investments	—			91
Unrealized loss on investment securities available-for-sale	342			14
Other	146			164
Total deferred tax asset	3,061			2,934

Components of the deferred tax liability
Depreciation	(893		)	(819		)
Mortgage servicing rights	(563		)	(519		)
Limited partnership investments	(17		)	—
Goodwill	(286		)	(231		)
Total deferred tax liability	(1,759		)	(1,569		)
Net deferred tax asset	$	1,302		$	1,365

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, 2016 will be realized and therefore no valuation allowance is warranted.

Net deferred income tax assets are included in Other assets in the consolidated balance sheets at December 31, 2016 and 2015.

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, 2016 and 2015. Although the Company is not currently the subject of a tax examination by the IRS, the Company's tax years ended December 31, 2013 through 2015 are open to examination by the IRS under the applicable statute of limitations. The 2016 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.