Entity information:
INCOME TAXES
The provision for income taxes is as follows:
 
At June 30,
(Dollars in thousands)
2017
 
2016
 
2015
Current:
 
 
 
 
 
Federal
$
74,053

 
$
67,773

 
$
49,801

State
26,120

 
24,478

 
17,192

 
100,173

 
92,251

 
66,993

Deferred:
 
 
 
 
 
Federal
(1,886
)
 
(5,363
)
 
(7,015
)
State
(334
)
 
(1,284
)
 
(1,803
)
 
(2,220
)
 
(6,647
)
 
(8,818
)
Total
$
97,953

 
$
85,604

 
$
58,175


The differences between the statutory federal income tax rate and the effective tax rates are summarized as follows:
 
At June 30,
 
2017
 
2016
 
2015
Statutory federal tax rate
35.00
 %
 
35.00
 %
 
35.00
 %
Increase (decrease) resulting from:
 
 
 
 
 
State taxes—net of federal tax benefit
7.23
 %
 
7.31
 %
 
6.81
 %
Cash surrender value
(0.03
)%
 
(0.03
)%
 
(0.04
)%
Tax credits
(0.19
)%
 
(0.18
)%
 
(0.24
)%
Non-taxable income
(0.28
)%
 
(0.36
)%
 
(0.58
)%
Other
0.37
 %
 
0.04
 %
 
0.35
 %
Effective tax rate
42.10
 %
 
41.78
 %
 
41.30
 %


The components of the net deferred tax asset are as follows:
 
At June 30,
(Dollars in thousands)
2017
 
2016
Deferred tax assets:
 
 
 
Allowance for loan and lease losses and charge-offs
$
18,845

 
$
16,601

State taxes
6,893

 
5,327

Stock-based compensation expense
2,703

 
1,915

Unrealized net (gains) losses on securities
(385
)
 
5,551

Deferred bonus / vacation
959

 
625

Securities impaired
8,395

 
11,345

Deferred loan fees
2,377

 
1,128

Total deferred tax assets
39,787

 
42,492

Deferred tax liabilities:
 
 
 
FHLB stock dividend
(1,181
)
 
(1,187
)
Other assets—prepaids
(1,363
)
 
(937
)
Depreciation
(2,902
)
 
(2,671
)
Total deferred tax liabilities
(5,446
)
 
(4,795
)
Net deferred tax asset
$
34,341

 
$
37,697


The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2017 and 2016, the Company believes that it will have sufficient earnings to realize its deferred tax asset and has not provided an allowance.
The following is a reconciliation of the beginning and ending amount of unrecognized tax positions for the periods presented:
(Dollars in thousands)
2017
 
2016
 
2015
Balance—beginning of period
$
880

 
$
779

 
$
293

Additions—current year tax positions
180

 
181

 
135

Additions—prior year tax positions
17

 
—

 
568

Reductions—prior year tax positions
(212
)
 
(80
)
 
(217
)
Total liability for unrecognized tax positions—end of period
$
865

 
$
880

 
$
779


The Company is subject to federal income tax and income tax of state taxing authorities. The Company’s federal income tax returns for the years ended June 30, 2014, 2015, and 2016 and its state taxing authorities income tax returns for the years ended June 30, 2013, 2014, 2015 and 2016 are open to audit under the statutes of limitations by the Internal Revenue Service and state taxing authorities.