Entity information:

The components of income tax expense were as follows:

 

    2017     2016     2015  
Current expense   $ 3,671     $ 3,046     $ 3,227  
Deferred expense (benefit)     (152 )     53       (341 )
Adjustments to deferred tax asset due to change in federal tax rate     811       -       -  
Total deferred (benefit) expense     659       53       (341 )
Total Income Tax Expense   $ 4,330     $ 3,099     $ 2,886  
                         

 

The components of deferred taxes as of December 31, were as follows:

 

    2017     2016  
Deferred Tax Assets:            
Allowance for loan losses   $ 1,265     $ 2,354  
Split Dollar Life Insurance     3       4  
Nonqualified deferred compensation     546       856  
Low income housing partnerships losses     203       94  
Core deposit amortization     108       165  
Other real estate owned     173       280  
Unfunded pension benefit obligation     1,096       1,633  
Total Assets   $ 3,394     $ 5,386  

 

    2017     2016  
Deferred Tax Liabilities:            
Unearned low income housing credits   $ 180     $ 307  
Depreciation     340       437  
Prepaid pension     1,010       1,840  
Goodwill tax amortization     559       901  
Net unrealized gain (loss) on securities available for sale     (5 )     3  
Total Liabilities     2 084       3,488  
Net Deferred Tax Asset (included in Other Assets on Balance Sheet)   $ 1,310     $ 1,898  

 

The following table summarizes the differences between the actual income tax expense and the amounts computed using the federal statutory tax rates:

 

    2017     2016     2015  
                   
Tax expense at federal statutory rates   $ 4,511     $ 4,307     $ 3,843  
Increases (decreases) in taxes resulting from:                        
State income taxes, net of federal benefit     -       6       8  
Partially tax-exempt income     (59 )     (41 )     (46 )
Tax-exempt income     (212 )     (217 )     (223 )
LIH and historic credits     (633 )     (896 )     (701 )
Deferred Tax Asset rate change     811                  
Other     (88 )     (60 )     5  
Total Income Tax Expense   $ 4,330     $ 3,099     $ 2,886  

 

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions in accordance with accounting guidance related to income taxes.

 

The Company and its subsidiaries file federal income tax returns and state income tax returns. With few exceptions, the Company is no longer subject to federal or state income tax examinations by tax authorities for years before 2014.