Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014



	2014		2013		2012
Statutory tax rate	35.0	%	35.0	%	35.0	%
Low income housing tax credits	(5.8	)%	(6.8	)%	(10.5	)%
Tax-exempt interest	(4.6	)%	(4.5	)%	(6.7	)%
Bank owned life insurance	(0.8	)%	(1.0	)%	(1.2	)%
Other	(0.6	)%	(0.4	)%	0.9	%
Effective Tax Rate	23.2	%	22.3	%	17.5	%

Significant components of our temporary differences were as follows at December 31:



(dollars in thousands)	2014			2013
Deferred Tax Liabilities:
Net unrealized holding gains on securities available-for-sale	$	(3,783	)	$	—
Prepaid pension	(3,472		)	(3,730		)
Deferred loan income	(2,165		)	(1,614		)
Purchase accounting adjustments	(631		)	(801		)
Depreciation on premises and equipment	(1,590		)	(1,061		)
Other	(812		)	(823		)
Total Deferred Tax liabilities	(12,453		)	(8,029		)
Deferred Tax Assets:
Net unrealized holding losses on securities available-for-sale	—			361
Allowance for loan losses	17,567			18,890
Other employee benefits	2,453			2,369
Low income housing partnerships	4,049			3,147
Net adjustment to funded status of pension	11,089			6,495
Impairment of securities	1,313			1,313
Delinquent interest on nonaccrual loans	—			1,626
State net operating loss carryforwards	2,249			1,828
Other	4,668			3,950
Gross Deferred Tax Assets	43,388			39,979
Less: Valuation allowance	(2,249		)	(2,199		)
Total Deferred Tax Assets	41,139			37,780
Net Deferred Tax Asset	$	28,686		$	29,751

A reconciliation of the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31:



(dollars in thousands)	2014			2013		2012
Balance at beginning of year	$	1,902		$	978	$	200
Prior period tax positions
Increase	55			924		—
Decrease	(1,673		)	—		—
Current period tax positions	—			—		913
Reductions for statute of limitations expirations	—			—		(135		)
Balance at End of Year	$	284		$	1,902	$	978
Amount That Would Affect the Effective Tax Rate if Recognized	$	184		$	148	$	147