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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 12 - Income Taxes

The current and deferred amounts of income tax expense for 2015, 2014 and 2013 are as follows (dollars in thousands):

		2015			2014			2013
Current:
Federal		$	22,512		$	7,715		$	5,658
State			907			946			87
Subtotal			23,419			8,661			5,745
Deferred:
Federal			(3,835)			223			1,906
State			342			(39)			(167)
Subtotal			(3,493)			184			1,739
Income tax expense		$	19,926		$	8,845		$	7,484

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory federal tax rate for the following reasons (dollars in thousands):

		2015			2014			2013
Income before income tax expense		$	61,237		$	27,410		$	27,409
Federal statutory rate			35%			35%			35%
Computed “expected” Federal income tax
expense			21,433			9,593			9,593
State tax, net of Federal tax benefit			812			589			(53)
Bank owned life insurance			(624)			(456)			(477)
Tax-exempt interest and dividends			(1,584)			(1,511)			(1,645)
Other, net			(111)			630			66
Income tax		$	19,926		$	8,845		$	7,484

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability at December 31, 2015 and 2014 are presented in the following table:

		2015			2014
		(dollars in thousands)
Deferred tax assets:
Nonaccrual interest		$	349		$	171
Allowance for loan and lease losses			10,798			5,681
Pension actuarial losses			2,605			2,980
Purchase accounting			7,195			9,221
Deferred compensation			1,479			1,066
Unrealized losses on securities and swaps			422			-
Deferred loan costs, net of fees			460			-
Accrued rent			530			476
Other			25			34
New Jersey net operating loss			-			902
Capital lease			427			389
Total deferred tax assets		$	24,290		$	20,920
Deferred tax liabilities:
Employee benefit plans		$	1,370		$	1,199
Depreciation			1,001			886
Market discount accretion			41			91
Deferred loan costs, net of fees			-			317
Prepaid expenses			341			393
Unrealized gains on securities and swaps			-			2,403
Other			27			64
Total deferred tax liabilities			2,780			5,353
Net deferred tax asset		$	21,510		$	15,567

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets for state purposes is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible, while for Federal purposes the deferred tax assets can also be realized through tax carrybacks. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income, and tax planning strategies in making this assessment. During 2015 and 2014, based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes the net deferred tax assets are more likely than not to be realized. The Company’s federal income tax returns are open and subject to examination from the 2012 tax return year and forward. The Company’s state income tax returns are generally open from the 2011 and later tax return years based on individual state statutes of limitations.