Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Federal Income Taxes [Abstract]

Net Deferred Tax Asset

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

(Dollars in thousands)	2015		2014
Deferred tax assets:
Allowance for loan and lease losses	$	2,097	$	2,283
Loan fees		79		68
Deferred compensation		313		289
Benefit plans		586		696
Nonaccrual interest		554		955
Phoenix adjustments		1,166		-
Other		170		111
		4,965		4,402
Deferred tax liabilities:
Depreciation		(1,074)		(801)
Bond accretion		(111)		(106)
Goodwill and intangibles		(472)		(264)
Unrealized gain on securities		(806)		(837)
Prepaid expenses		(240)		(266)
Phoenix adjustments		(428)		-
Other		(13)		(3)
		(3,144)		(2,277)
Deferred tax asset, net	$	1,821	$	2,125

Provision for (Benefit from) Income Taxes

The provision for income taxes consists of the following:

(Dollars in thousands)	2015		2014		2013
Current	$	647	$	1,574	$	1,009
Deferred		997		(112)		192
Total provision for income taxes	$	1,644	$	1,462	$	1,201

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax at the statutory rate of 34% to Mid Penn's effective rate is as follows:

(Dollars in thousands)	2015		2014		2013
Provision at the expected statutory rate	$	2,779	$	2,435	$	2,088
Effect of tax-exempt income		(1,105)		(1,086)		(873)
Effect of investment in life insurance		(91)		(68)		(78)
Nondeductible interest		37		42		40
Nondeductible merger and acquisition expense		34		163		-
Other items		(10)		(24)		24
Provision for income taxes	$	1,644	$	1,462	$	1,201