INCOME TAXES (Dollars In Thousands)

The provision for income taxes is summarized below:



Current Tax Expense:	2016			2015		2014
Federal	$	10,496		$	8,570	$	9,270
State	1,002			1,004		1,203
Total Current Tax Expense	11,498			9,574		10,473
Deferred Tax Expense (Benefit):
Federal	(69		)	860		(315		)
State	(214		)	176		16
Total Deferred Tax Expense (Benefit)	(283		)	1,036		(299		)
Total Provision for Income Taxes	$	11,215		$	10,610	$	10,174

The provisions for income taxes differed from the amounts computed by applying the U.S. Federal Income Tax Rate of 35% for 2016, 2015 and 2014 to pre-tax income as a result of the following:



	2016			2015			2014
Computed Tax Expense at Statutory Rate	$	13,212		$	12,345		$	11,737
Increase (Decrease) in Income Taxes Resulting From:
Tax-Exempt Income	(2,437		)	(2,292		)	(2,215		)
Nondeductible Interest Expense	40			36			51
State Taxes, Net of Federal Income Tax Benefit	554			805			791
Other Items, Net	(154		)	(284		)	(190		)
Total Provision for Income Taxes	$	11,215		$	10,610		$	10,174

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are presented below:



	2016		2015
Deferred Tax Assets:
Allowance for Loan Losses	$	6,609	$	6,453
Pension and Deferred Compensation Plans	3,961		3,973
Pension Liability Included in Accumulated Other Comprehensive Income	4,023		5,550
Other	502		557
Net Unrealized Losses on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	239		—
Total Gross Deferred Tax Assets	15,334		16,533
Valuation Allowance for Deferred Tax Assets	—		—
Total Gross Deferred Tax Assets, Net of Valuation Allowance	$	15,334	$	16,533
Deferred Tax Liabilities:
Pension Plans	$	8,399	$	8,680
Depreciation	1,430		1,383
Deferred Income	4,199		4,167
Net Unrealized Gains on Securities Available-for-Sale Included in Accumulated Other Comprehensive Income	—		405
Goodwill	5,324		5,316
Total Gross Deferred Tax Liabilities	$	19,352	$	19,951

Management believes that the realization of the recognized gross deferred tax assets at December 31, 2016 and 2015 is more likely than not, based on historic earnings 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 2013 through 2016 are subject to Federal and New York State examination.