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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The income tax provision for the years ended December 31 is as follows:
| 2016 |  | 2015 |  | 2014
| (dollars in thousands)
Current tax provision |  |  |  |  |
Federal | $ | 19,879 |  |  | $ | 8,610 |  |  | $ | 12,661 |
State | 154 |  |  | 68 |  |  | 157 |
Total current tax provision | 20,033 |  |  | 8,678 |  |  | 12,818 |
Deferred tax provision (benefit): |  |  |  |  |
Federal | 5,846 |  |  | 12,158 |  |  | 4,862 |
State | (240 | ) |  | — |  |  | — |
Total deferred tax provision | 5,606 |  |  | 12,158 |  |  | 4,862 |
Total tax provision | $ | 25,639 |  |  | $ | 20,836 |  |  | $ | 17,680 |
The statutory to effective tax rate reconciliation for the years ended December 31 is as follows:
| 2016 |  | 2015 |  | 2014
| Amount |  | % of Pretax Income |  | Amount |  | % of Pretax Income |  | Amount |  | % of Pretax Income
| (dollars in thousands)
Tax at statutory rate | $ | 29,830 |  |  | 35 | % |  | $ | 24,843 |  |  | 35 | % |  | $ | 21,747 |  |  | 35 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |
Income from bank owned life insurance | (1,883 | ) |  | (2 | ) |  | (1,894 | ) |  | (3 | ) |  | (1,926 | ) |  | (3 | )
Tax-exempt interest income, net | (2,434 | ) |  | (3 | ) |  | (2,232 | ) |  | (3 | ) |  | (2,133 | ) |  | (4 | )
Tax credits | — |  |  | — |  |  | (61 | ) |  | — |  |  | (134 | ) |  | — |
Other | 126 |  |  | — |  |  | 180 |  |  | — |  |  | 126 |  |  | — |
Total tax provision | $ | 25,639 |  |  | 30 | % |  | $ | 20,836 |  |  | 29 | % |  | $ | 17,680 |  |  | 28 | %
The total tax provision for financial reporting differs from the amount computed by applying the statutory federal income tax rate to income before taxes. First Commonwealth ordinarily generates an annual effective tax rate that is less than the statutory rate of 35% due to benefits resulting from tax-exempt interest, income from bank owned life insurance and tax benefits associated with low income housing tax credits. The consistent level of tax benefits that reduce First Commonwealth’s tax rate below the 35% statutory rate produced an annual effective tax rate of 30%, 29% and 28% for the years ended December 31, 2016, 2015 and 2014, respectively. The tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities that represent significant portions of the deferred tax assets and liabilities at December 31 are presented below:
| 2016 |  | 2015
| (dollars in thousands)
Deferred tax assets: |  |  |
Allowance for credit losses | $ | 17,616 |  |  | $ | 17,784 |
Postretirement benefits other than pensions | 611 |  |  | 641 |
Alternative minimum tax credit carryforward | — |  |  | 5,065 |
Litigation reserve | 106 |  |  | — |
Unrealized loss on securities available for sale | 3,905 |  |  | 1,291 |
Writedown of other real estate owned | 1,266 |  |  | 1,087 |
Deferred compensation | 1,966 |  |  | 2,113 |
Accrued interest on nonaccrual loans | 1,701 |  |  | 1,452 |
Other-than-temporary impairment of securities | 88 |  |  | 89 |
Depreciation of assets | — |  |  | 879 |
Accrued incentives | 2,627 |  |  | 1,629 |
Unfunded loan commitment allowance | 1,452 |  |  | 1,557 |
Accrued severance | 102 |  |  | 808 |
Basis difference in assets acquired | 296 |  |  | 417 |
Loan origination fees and costs | 290 |  |  | 141 |
Deferred rent | 1,285 |  |  | 1,258 |
Other | 1,084 |  |  | 1,105 |
Total deferred tax assets | 34,395 |  |  | 37,316 |
Deferred tax liabilities: |  |  |
Income from unconsolidated subsidiary | (623 | ) |  | (619 | )
Depreciation of assets | (28 | ) |  | — |
Other | (429 | ) |  | (337 | )
Total deferred tax liabilities | (1,080 | ) |  | (956 | )
Net deferred tax asset | $ | 33,315 |  |  | $ | 36,360 |
Management assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on on our evaluation, of December 31, 2016, management has determined that no valuation allowance is necessary for the deferred tax assets because it is more likely than not that these assets will be realized through a carry-back to taxable income in prior years, future reversals of existing temporary differences, and through future taxable income. In accordance with FASB ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes," the Company has no material unrecognized tax benefits or accrued interest and penalties as of December 31, 2016. We do not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Company records interest and penalties on unrecognized tax benefits as a component of noninterest expense. First Commonwealth is subject to routine audits of our tax returns by the Internal Revenue Service ("IRS") as well as all states in which we conduct business. During 2015, the IRS completed an examination of our 2013 federal tax return. The examination was closed with no adjustments. Generally, tax years prior to the year ended December 31, 2013 are no longer open to examination by federal and 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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