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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:
December 31 (In thousands) |  | 2016 |  | 2015
Deferred tax assets: |  |
Allowance for loan losses |  | $ | 17,719 |  |  | $ | 19,773 |
Accumulated other comprehensive loss – Pension plan |  | 7,937 |  |  | 8,266 |
Accumulated other comprehensive loss – Unrealized losses on securities |  | 1,618 |  |  | 157 |
Deferred compensation |  | 4,140 |  |  | 3,908 |
OREO valuation adjustments |  | 2,322 |  |  | 2,418 |
Net deferred loan fees |  | 1,397 |  |  | 1,204 |
Deferred contract bonus |  | 1,074 |  |  | 1,031 |
Nonvested equity-based compensation |  | 1,115 |  |  | 463 |
Fixed assets |  | 781 |  |  | 413 |
Accrued litigation |  | 793 |  |  | 482 |
Other |  | 2,525 |  |  | 2,813 |
Total deferred tax assets |  | $ | 41,421 |  |  | $ | 40,928 |
Deferred tax liabilities: |  |  |  |
Deferred investment income |  | 10,199 |  |  | 10,199 |
Pension plan |  | 26,344 |  |  | 26,205 |
Mortgage servicing rights |  | 3,243 |  |  | 3,153 |
Partnership adjustments |  | 549 |  |  | 560 |
Other |  | 596 |  |  | 872 |
Total deferred tax liabilities |  | $ | 40,931 |  |  | $ | 40,989 |
Net deferred tax asset (liability) |  | $ | 490 |  |  | $ | (61 | )
Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with GAAP. Management has determined that it is not required to establish a valuation allowance against the December 31, 2016 or 2015 deferred tax assets in accordance with GAAP since it is more likely than not that the deferred tax assets will be fully utilized in future periods. The components of the provision for federal income taxes are shown below:
December 31, (In thousands) |  | 2016 |  | 2015 |  | 2014
Currently payable |  |  |  |  |  |
Federal |  | $ | 28,879 |  |  | $ | 26,153 |  |  | $ | 27,062 |
Amortization of qualified affordable housing projects |  | 7,300 |  |  | 6,664 |  |  | 6,869 |
Deferred |  |  |  |  |  |
Federal |  | 581 |  |  | (250 | ) |  | 2,528 |
Total |  | $ | 36,760 |  |  | $ | 32,567 |  |  | $ | 36,459 |
The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2016, 2015 and 2014.
|  | 2016 |  | 2015 |  | 2014
Statutory federal corporate tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Changes in rates resulting from: |  |  |  |  |  |
Tax exempt interest income, net of disallowed interest |  | (1.3 | )% |  | (0.5 | )% |  | (0.5 | )%
Bank owned life insurance |  | (1.2 | )% |  | (1.8 | )% |  | (1.4 | )%
Investments in qualified affordable housing projects, net of tax benefits |  | (1.7 | )% |  | (1.9 | )% |  | (1.6 | )%
Other tax credits |  | — | % |  | (0.9 | )% |  | — | %
KSOP dividend deduction |  | (1.0 | )% |  | (1.0 | )% |  | (1.0 | )%
Other |  | 0.1 | % |  | (0.2 | )% |  | (0.2 | )%
Effective tax rate |  | 29.9 | % |  | 28.7 | % |  | 30.3 | %
Park and its subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on equity. The franchise tax expense is included in "State tax expense" on Park’s Consolidated Statements of Income. Unrecognized Tax Benefits The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.
(In thousands) |  | 2016 |  | 2015 |  | 2014
January 1 Balance |  | $ | 558 |  |  | $ | 532 |  |  | $ | 518 |
Additions based on tax positions related to the current year |  | 117 |  |  | 80 |  |  | 76 |
Additions for tax positions of prior years |  | 38 |  |  | 16 |  |  | 14 |
Reductions for tax positions of prior years |  | — |  |  | — |  |  | — |
Reductions due to statute of limitations |  | (80 | ) |  | (70 | ) |  | (76 | )
December 31 Balance |  | $ | 633 |  |  | $ | 558 |  |  | $ | 532 |
The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2016, 2015 and 2014 was $482,000, $432,000 and $413,000, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the next year. The expense related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2016, and 2015 was $1,500 and $2,000, respectively. There was no expense related to interest and penalties for the year ended December 31, 2014. The amount accrued for interest and penalties at December 31, 2016, 2015 and 2014 was $70,500, $69,000 and $67,000, respectively. Park and its subsidiaries are subject to U.S. federal income tax and income tax in various state jurisdictions. The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we conduct business. No material adjustments have been made on closed federal and state tax audits. All tax years ending prior to December 31, 2013 are closed to examination by the federal taxing authorities. Generally, all tax years prior to December 31, 2012 are closed to examination by state taxing authorities.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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