(12) Income Taxes

The significant components of income tax expense attributable to operations are:

	Years ended December 31,
(In thousands)	2015		2014		2013
Current
Federal	$	32,871	$	26,059	$	23,536
State		4,329		2,823		2,316
		37,200		28,882		25,852

Deferred
Federal		2,521		6,648		2,334
State		482		1,699		10
		3,003		8,347		2,344
Total income tax expense	$	40,203	$	37,229	$	28,196

Not included in the above table are items that were recorded to stockholders' equity of approximately $3.4 million, $(1.1) million, and $7.0 million for 2015, 2014, and 2013, respectively, relating to deferred taxes on the unrealized (gain) loss on available for sale securities, tax benefits recognized with respect to stock options exercised, and deferred taxes related to pension plans.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

	December 31,
(In thousands)	2015		2014
Deferred tax assets
Allowance for loan losses	$	24,090	$	25,689
Deferred compensation		10,023		8,744
Postretirement benefit obligation		2,988		2,377
Fair value adjustments from acquisitions		2,543		-
Unrealized losses on securities		589		-
Accrued liabilities		2,889		1,778
Stock-based compensation expense		5,394		6,457
Equipment leasing		476		1,416
Other		1,477		1,325
Total deferred tax assets		50,469		47,786
Deferred tax liabilities
Pension benefits		11,908		12,192
Fair value adjustments from acquisitions		-		1,243
Unrealized gains on securities		-		1,331
Premises and equipment, primarily due to accelerated depreciation		2,444		2,491
Deferred loan costs		1,591		1,460
Intangible amortization		19,082		14,162
Other		504		390
Total deferred tax liabilities		35,529		33,269
Net deferred tax asset at year-end		14,940		14,517
Net deferred tax asset at beginning of year		14,517		21,789
Increase (Decrease) in net deferred tax asset	$	423	$	(7,272	)

Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the available carryback period. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. Based on available evidence, gross deferred tax assets will ultimately be realized and a valuation allowance was not deemed necessary at December 31, 2015 and 2014.

At December 31, 2015, 2014, and 2013 the Company had no ASC 740-10 unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months.

The Company is no longer subject to U.S. Federal tax examination by tax authorities for years prior to 2012 and New York State for years prior to 2012. The Company recognizes interest expense and penalties related to unrecognized tax benefits, if any, in income tax expense.

The following is a reconciliation of the provision for income taxes to the amount computed by applying the applicable Federal statutory rate of 35 % to income before taxes:

	Years ended December 31
(In thousands)	2015			2014			2013
Federal income tax at statutory rate	$	40,820		$	39,306		$	31,482
Tax exempt income		(2,037	)		(2,250	)		(2,433	)
Net increase in CSV of life insurance		(1,373	)		(1,734	)		(1,166	)
Low income housing tax credits		(939	)		(880	)		(819	)
State taxes, net of federal tax benefit		3,127			2,939			1,512
Other, net		605			(152	)		(380	)
Income tax expense	$	40,203		$	37,229		$	28,196