INCOME TAXES (Dollars In Thousands)

The provision for income taxes is summarized below:



Current Tax Expense:	2015		2014			2013
Federal	$	8,570	$	9,270		$	7,933
State	860		1,203			852
Total Current Tax Expense	9,430		10,473			8,785
Deferred Tax Expense (Benefit):
Federal	1,004		(315		)	172
State	176		16			122
Total Deferred Tax Expense (Benefit)	1,180		(299		)	294
Total Provision for Income Taxes	$	10,610	$	10,174		$	9,079

The provisions for income taxes differed from the amounts computed by applying the U.S. Federal Income Tax Rate of 35% for 2015, 2014 and 2013 to pre-tax income as a result of the following:



	2015			2014			2013
Computed Tax Expense at Statutory Rate	$	12,345		$	11,737		$	10,806
Increase (Decrease) in Income Taxes Resulting From:
Tax-Exempt Income	(2,292		)	(2,215		)	(2,238		)
Nondeductible Interest Expense	36			51			80
State Taxes, Net of Federal Income Tax Benefit	805			791			633
Other Items, Net	(284		)	(190		)	(202		)
Total Provision for Income Taxes	$	10,610		$	10,174		$	9,079

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below:



	2015		2014
Deferred Tax Assets:
Allowance for Loan Losses	$	6,453	$	6,113
Pension and Deferred Compensation Plans	3,973		3,885
Pension Liability Included in Accumulated Other Comprehensive Income	5,550		6,263
Other	557		614
Total Gross Deferred Tax Assets	16,533		16,875
Valuation Allowance for Deferred Tax Assets	—		—
Total Gross Deferred Tax Assets, Net of Valuation Allowance	$	16,533	$	16,875
Deferred Tax Liabilities:
Pension Plans	$	8,680	$	7,604
Depreciation	1,383		1,222
Deferred Income	4,167		3,927
Net Unrealized Gains on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	405		1,638
Goodwill	5,316		5,242
Total Gross Deferred Tax Liabilities	$	19,951	$	19,633

Management believes that the realization of the recognized net deferred tax assets at December 31, 2015 and 2014 is more likely than not, based on existing loss carryback ability, available tax planning strategies and expectations as to future taxable income.

Interest and penalties are recorded as a component of the provision for income taxes, if any. There are no current examinations of our Federal or state income tax returns, nor have we been notified of any up-coming examinations. Tax years 2012 through 2015 are subject to Federal and New York State examination.