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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | Note 10 INCOME TAXES The provision for income taxes reflected in the statements of comprehensive income is comprised of the following components:
(Dollars in Thousands) |  | 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,295 |  | $ | 497 |  | $ | (51)
State |  |  | 115 |  |  | 115 |  |  | (2,916)
|  |  | 2,410 |  |  | 612 |  |  | (2,967)
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 2,742 |  |  | 3,258 |  |  | 4,270
State |  |  | 712 |  |  | 475 |  |  | 249
Change in Valuation Allowance |  |  | 3 |  |  | 114 |  |  | 102
|  |  | 3,457 |  |  | 3,847 |  |  | 4,621
Total: |  |  |  |  |  |  |  |  |
Federal |  |  | 5,037 |  |  | 3,755 |  |  | 4,219
State |  |  | 827 |  |  | 590 |  |  | (2,667)
Change in Valuation Allowance |  |  | 3 |  |  | 114 |  |  | 102
Total |  | $ | 5,867 |  | $ | 4,459 |  | $ | 1,654
Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of 35% to pre-tax income as a result of the following:
(Dollars in Thousands) |  | 2016 |  | 2015 |  | 2014
Tax Expense at Federal Statutory Rate |  | $ | 6,165 |  | $ | 4,751 |  | $ | 3,820
Increases (Decreases) Resulting From: |  |  |  |  |  |  |  |  |
Tax-Exempt Interest Income |  |  | (662) |  |  | (395) |  |  | (327)
Change in Reserve for Uncertain Tax Positions |  |  | - |  |  | - |  |  | (2,902)
State Taxes, Net of Federal Benefit |  |  | 538 |  |  | 390 |  |  | 892
Other |  |  | 121 |  |  | 562 |  |  | 243
Change in Valuation Allowance |  |  | 3 |  |  | 114 |  |  | 102
Tax-Exempt Cash Surrender Value Life Insurance Benefit |  |  | (298) |  |  | (303) |  |  | (174)
Excess Death Benefit Payment |  |  | - |  |  | (660) |  |  | -
Actual Tax Expense |  | $ | 5,867 |  | $ | 4,459 |  | $ | 1,654
Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that are currently in effect. The net deferred tax asset and the temporary differences comprising that balance at December 31, 2016 and 2015 are as follows:
(Dollars in Thousands) |  | 2016 |  | 2015
Deferred Tax Assets Attributable to: |  |  |  |  |  |
Allowance for Loan Losses |  | $ | 5,182 |  | $ | 5,383
Accrued Pension/SERP |  |  | 16,107 |  |  | 13,901
State Net Operating Loss and Tax Credit Carry-Forwards |  |  | 4,804 |  |  | 5,061
Other Real Estate Owned |  |  | 3,550 |  |  | 5,012
Federal Net Operating Loss and Tax Credit Carry-Forwards |  |  | 401 |  |  | 1,241
Other |  |  | 4,238 |  |  | 4,351
Total Deferred Tax Assets |  | $ | 34,282 |  | $ | 34,949
Deferred Tax Liabilities Attributable to: |  |  |  |  |  |
Depreciation on Premises and Equipment |  | $ | 5,480 |  | $ | 5,982
Deferred Loan Fees and Costs |  |  | 3,342 |  |  | 2,883
Intangible Assets |  |  | 4,319 |  |  | 4,019
Other |  |  | 724 |  |  | 687
Total Deferred Tax Liabilities |  |  | 13,865 |  |  | 13,571
Valuation Allowance |  |  | 1,445 |  |  | 1,442
Net Deferred Tax Asset |  | $ | 18,972 |  | $ | 19,936
In the opinion of management, it is more likely than not that all of the deferred tax assets, with the exception of certain state ne t operating loss carry-forward s, certain state tax credit carry-forwards, and certain capital loss carry-forwards expected to expire prior to utilization, will be realized. Accordingly, a valuation allowance of $1.4 million is recorded at December 31, 2016. At December 31, 201 6, the Company had state loss and tax credit carry-forwards of approximately $4.8 million, which expir e at various dates from 201 7 through 2035, federal capital loss carry-forwards of approximately $0.1 million which expire at various dates from 2019 through 2020, and federal tax credit carry-forwards of approximately $0.3 million which never expire. The Comp any had no unrecognized tax benefits at December 31, 2016, December 31, 2015 and December 31, 2014. A reconciliation of the beginning and ending unrecognized tax benefit is as follows:
(Dollars in Thousands) |  | 2016 |  | 2015 |  | 2014
Balance at January 1, |  | $ | - |  | $ | - |  | $ | 3,228
Decrease Due to Settlements With Taxing Authorities |  |  | - |  |  | - |  |  | (3,228)
Balance at December 31 |  | $ | - |  | $ | - |  | $ | -
It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective federal or state income taxes accounts. For the years ended December 31, 2016 and December 31, 2015, there were no previously accrued interest and penalties reversed in the income statement. For the year ended December 31, 2014, the company reversed previously accrued interest and penalties of $800,000. There were no amounts for accrued interest and pen alties at December 31, 2016 and 2015. The Company and its subsidiaries file a consolidated U.S. federal income tax return, as well as file various returns in states where its banking offices are located. The Company is no longer subject to U.S. federal o r state tax examinations for years before 2013.

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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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