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Federal Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Federal Income Taxes |
(17) | Federal Income Taxes
The following temporary differences gave rise to the net deferred tax asset at December 31, 2016 and 2015.
(Dollars in thousands) |  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan and lease losses |  | $ | 2,442 |  |  | $ | 2,097 |
Loan fees |  |  | 82 |  |  |  | 79 |
Deferred compensation |  |  | 906 |  |  |  | 313 |
Benefit plans |  |  | 955 |  |  |  | 586 |
Unrealized loss on securities |  |  | 1,504 |  |  |  | — |
Nonaccrual interest |  |  | — |  |  |  | 554 |
Business combination adjustments |  |  | 720 |  |  |  | 1,166 |
Other |  |  | 177 |  |  |  | 170 |
|  |  | 6,786 |  |  |  | 4,965 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (1,175 | ) |  |  | (1,074 | )
Bond accretion |  |  | (117 | ) |  |  | (111 | )
Goodwill and intangibles |  |  | (500 | ) |  |  | (472 | )
Unrealized gain on securities |  |  | — |  |  |  | (806 | )
Prepaid expenses |  |  | (312 | ) |  |  | (240 | )
Business combination adjustments |  |  | (367 | ) |  |  | (428 | )
Other |  |  | (29 | ) |  |  | (13 | )
|  |  | (2,500 | ) |  |  | (3,144 | )
Deferred tax asset, net |  | $ | 4,286 |  |  | $ | 1,821 |
In assessing the realizability of federal or state deferred tax assets, management considers whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. 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, management believes it is more likely than not that Mid Penn will realize the benefits of these deferred tax assets. The provision for income taxes consists of the following:
(Dollars in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Current expense |  | $ | 2,613 |  |  | $ | 647 |  |  | $ | 1,574 |
Deferred (benefit) expense |  |  | (336 | ) |  |  | 997 |  |  |  | (112 | )
Total provision for income taxes |  | $ | 2,277 |  |  | $ | 1,644 |  |  | $ | 1,462 |
A reconciliation of income tax at the statutory rate of 34% to Mid Penn’s effective rate is as follows:
(Dollars in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Provision at the expected statutory rate |  | $ | 3,428 |  |  | $ | 2,779 |  |  | $ | 2,435 |
Effect of tax-exempt income |  |  | (1,089 | ) |  |  | (1,105 | ) |  |  | (1,086 | )
Effect of investment in life insurance |  |  | (90 | ) |  |  | (91 | ) |  |  | (68 | )
Nondeductible interest |  |  | 41 |  |  |  | 37 |  |  |  | 42 |
Nondeductible merger and acquisition expense |  |  | — |  |  |  | 34 |  |  |  | 163 |
Other items |  |  | (13 | ) |  |  | (10 | ) |  |  | (24 | )
Provision for income taxes |  | $ | 2,277 |  |  | $ | 1,644 |  |  | $ | 1,462 |
Mid Penn has no unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. Mid Penn does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No amounts for interest and penalties were recorded in income tax expense in the consolidated statement of income for the years ended December 31, 2016, 2015, or 2014. There were no amounts accrued for interest and penalties at December 31, 2016 or 2015. Mid Penn and its subsidiaries are subject to U.S. federal income tax and income tax for the state of Pennsylvania. With limited exceptions, Mid Penn is no longer subject to examination by taxing authorities 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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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