INCOME TAXES

The following temporary differences gave rise to the net deferred tax asset position at December 31, 2015 and 2014:



(In Thousands)	2015		2014
Deferred tax assets:
Allowance for loan losses	$	3,976	$	3,380
Deferred compensation	1,696		1,579
Defined Pension	1,525		2,172
Deferred Loan fees and discounts	272		256
Investment securities allowance	517		487
Low income housing credit carryforward	1,181		2,034
Capital loss carryforward	—		98
Other	1,696		1,578
Total	10,863		11,584
Deferred tax liabilities:
Unrealized gain on available for sale securities	133		1,510
Investment security accretion	231		262
Depreciation	478		734
Amortization	1,031		977
Total	1,873		3,483
Deferred tax asset, net	$	8,990	$	8,101

The current low income housing credit carryforward will expire in 2031. The Company fully anticipates being able to use the carry-forward.

No valuation allowance was established at December 31, 2015 and 2014, because of the Company’s ability to carry back capital losses to recover taxes paid in previous years and certain tax strategies, together with the anticipated future taxable income as evidenced by the Company’s earning potential. The Corporation is no longer subject to federal, state, and local examinations by tax authorities for years before 2012.

The provision or benefit for income taxes is comprised of the following for the year ended December 31, 2015, 2014, and 2013:



(In Thousands)	2015		2014		2013
Currently payable	$	3,527	$	3,680	$	3,328
Deferred benefit	209		124		123
Total provision	$	3,736	$	3,804	$	3,451

A reconciliation between the expected income tax or benefit and the effective income tax rate on income before income tax provision or benefit follows for the year ended December 31, 2015, 2014, and 2013:



	2015					2014					2013
(In Thousands)	Amount			%		Amount			%		Amount			%
Provision at expected rate	$	5,996		34.00	%	$	6,260		34.00	%	$	5,962		34.00	%
(Decrease) increase in tax resulting from:
Tax-exempt income	(1,492		)	(8.46	)	(1,673		)	(9.09	)	(1,933		)	(11.02	)
Tax credits	(737		)	(4.17	)	(737		)	(4.00	)	(737		)	(4.20	)
Other, net	(31		)	(0.18	)	(46		)	(0.25	)	159			0.90
Effective income tax provision and rate	$	3,736		21.19	%	$	3,804		20.66	%	$	3,451		19.68	%