Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income tax expense (benefit) for the years ended December 31 is comprised of:

The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:



	2016		2015		2014
Statutory tax rate	35.0	%	35.0	%	35.0	%
Low income housing tax credits	(3.8	)%	(4.4	)%	(5.8	)%
Tax-exempt interest	(4.4	)%	(4.1	)%	(4.6	)%
Bank owned life insurance	(0.8	)%	(0.8	)%	(0.8	)%
Other	0.2	%	1.0	%	(0.6	)%
Effective Tax Rate	26.2	%	26.7	%	23.2	%

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



(dollars in thousands)	2016			2015
Deferred Tax Liabilities:
Net unrealized holding gains on securities available-for-sale	$	(2,557	)	$	(3,563	)
Prepaid pension	(2,770		)	(2,865		)
Deferred loan income	(3,815		)	(2,847		)
Depreciation on premises and equipment	(1,239		)	(1,226		)
Other	(1,766		)	(809		)
Total Deferred Tax liabilities	(12,147		)	(11,310		)
Deferred Tax Assets:
Allowance for loan losses	19,446			17,740
Purchase accounting adjustments	365			1,298
Other employee benefits	3,983			2,556
Low income housing partnerships	4,845			4,531
Net adjustment to funded status of pension	10,018			12,425
Impairment of securities	1,318			1,354
State net operating loss carryforwards	3,114			2,670
Other	4,984			6,155
Gross Deferred Tax Assets	48,073			48,729
Less: Valuation allowance	(3,114		)	(2,670		)
Total Deferred Tax Assets	44,959			46,059
Net Deferred Tax Asset	$	32,812		$	34,749

The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31:



(dollars in thousands)	2016			2015		2014
Balance at beginning of year	$	1,102		$	284	$	1,902
Prior period tax positions
Increase	—			818		55
Decrease	(449		)	—		(1,673		)
Current period tax positions	151			—		—
Reductions for statute of limitations expirations	—			—		—
Balance at End of Year	$	804		$	1,102	$	284
Amount That Would Impact the Effective Tax Rate if Recognized	$	610		$	542	$	184