(14) Income Taxes

The Company files a consolidated U.S. Federal and State income tax return. The current and deferred portions of net income tax expense included in the consolidated statements of income are presented below for the years ended December 31:


	2016		2015		2014
	(Dollars in Thousands)
Current
U.S.	$	52,403	$	65,196	$	72,561
State		3,362		5,258		5,252
Foreign		—		(6)		1
Total current taxes		55,765		70,448		77,814
Deferred
U.S.		7,279		(261)		(969)
State		27		(71)		(58)
Total deferred taxes		7,306		(332)		(1,027)
Total income taxes	$	63,071	$	70,116	$	76,787

Total income tax expense differs from the amount computed by applying the U.S. Federal income tax rate of 35% for 2016, 2015 and 2014 to income before income taxes. The reasons for the differences for the years ended December 31 are as follows:


	2016		2015		2014
	(Dollars in Thousands)
Computed expected tax expense	$	69,253	$	72,389	$	80,560
Change in taxes resulting from:
Tax-exempt interest income		(3,940)		(3,910)		(4,554)
State tax, net of federal income taxes and tax credit		3,287		3,371		3,377
Other investment income		(3,694)		(3,540)		(3,615)
Other		(1,835)		1,806		1,019
Actual tax expense	$	63,071	$	70,116	$	76,787

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are reflected below:


	2016		2015
	(Dollars in Thousands)
Deferred tax assets:
Loans receivable, principally due to the allowance for probable loan losses	$	24,315	$	25,689
Other real estate owned		3,652		3,224
Impairment charges on available-for-sale securities		6,086		5,959
Accrued expenses		137		137
Net unrealized losses on available for sale investment securities		14,791		—
Other		6,917		7,411
Total deferred tax assets		55,898		42,420
Deferred tax liabilities:
Bank premises and equipment, principally due to differences on depreciation		(19,837)		(18,266)
Net unrealized gains on available for sale investment securities		—		(1,171)
Identified intangible assets and goodwill		(21,386)		(20,169)
Other		(16,300)		(13,099)
Total deferred tax liabilities		(57,523)		(52,705)
Net deferred tax liability	$	(1,625)	$	(10,285)

The net deferred tax liability of $1,625,000 at December 31, 2016 and $10,285,000 at December 31, 2015 is included in other liabilities in the consolidated statements of condition.