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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes [Abstract] |
Income Taxes | (15.) INCOME TAXES The income tax expense for the years ended December 31 consisted of the following (in thousands):
|  | 2016 |  |  | 2015 |  | 2014 |
Current tax expense (benefit): |  |  |  |  |  |  |  |
Federal | $ | 13,846 |  | $ | 8,720 | $ | 7,546 |
State |  | 82 |  |  | 21 |  | (75 | )
Total current tax expense |  | 13,928 |  |  | 8,741 |  | 7,471 |
Deferred tax (benefit) expense: |  |  |  |  |  |  |  |
Federal |  | (2,175 | ) |  | 1,440 |  | 2,538 |
State |  | 457 |  |  | 358 |  | (384 | )
Total deferred tax (benefit) expense |  | (1,718 | ) |  | 1,798 |  | 2,154 |
Total income tax expense | $ | 12,210 |  | $ | 10,539 | $ | 9,625 |
Income tax expense differed from the statutory federal income tax rate for the years ended December 31 as follows:
| 2016 |  | 2015 |  | 2014 |
Statutory federal tax rate | 35.0 | % | 35.0 | % | 35.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |
Tax exempt interest income | (5.6 | ) | (6.1 | ) | (5.1 | )
Tax credits and adjustments | 0.3 |  | (0.7 | ) | (3.5 | )
Non-taxable earnings on company owned life insurance | (2.2 | ) | (1.8 | ) | (1.6 | )
State taxes, net of federal tax benefit | 0.8 |  | 0.7 |  | (0.8 | )
Nondeductible expenses | 0.2 |  | 0.3 |  | 0.5 |
Goodwill and contingent consideration adjustments | (0.9 | ) | (0.3 | ) | - |
Other, net | 0.1 |  | - |  | 0.2 |
Effective tax rate | 27.7 | % | 27.1 | % | 24.7 | %
Total income tax expense (benefit) was as follows for the years ended December 31 (in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014
Income tax expense | $ | 12,210 |  | $ | 10,539 |  | $ | 9,625
Shareholder's equity |  | (1,649 | ) |  | (1,456 | ) |  | 925
The Company recognizes deferred income taxes for the estimated future tax effects of differences between the tax and financial statement bases of assets and liabilities considering enacted tax laws. These differences result in deferred tax assets and liabilities, which are included in other assets in the Company's consolidated statements of condition. The Company also assesses the likelihood that deferred tax assets will be realizable based on, among other considerations, future taxable income and establishes, if necessary, a valuation allowance for those deferred tax assets determined to not likely be realizable. A deferred tax asset valuation allowance is recognized if, based on the weight of available evidence (both positive and negative), it is more likely than not that some portion or all of the deferred tax assets will not be realized. The future realization of deferred tax benefits depends upon the existence of sufficient taxable income within the carry-back and carry-forward periods. Management's judgment is required in determining the appropriate recognition of deferred tax assets and liabilities, including projections of future taxable income. The Company's net deferred tax asset is included in other assets in the consolidated statements of condition. The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows at December 31 (in thousands):
|  | 2016 |  | 2015
Deferred tax assets: |  |  |  |
Allowance for loan losses | $ | 11,938 | $ | 10,452
Deferred compensation |  | 1,357 |  | 972
Investment in limited partnerships |  | 943 |  | 954
SERP agreements |  | 682 |  | 767
Interest on nonaccrual loans |  | 453 |  | 615
Benefit of tax credit carryforwards |  | - |  | 502
Share-based compensation |  | 604 |  | 538
Net unrealized loss on securities available for sale |  | 2,326 |  | 420
Other than temporary impairment of investment securities |  | - |  | -
Other |  | 120 |  | 328
Gross deferred tax assets |  | 18,423 |  | 15,548
Deferred tax liabilities: |  |  |  |
Prepaid pension costs |  | 4,727 |  | 5,065
Intangible assets |  | 4,059 |  | 2,667
Depreciation and amortization |  | 1,085 |  | 1,004
Net unrealized gain on securities available for sale |  | - |  | -
Loan servicing assets |  | 415 |  | 479
Other |  | 234 |  | -
Gross deferred tax liabilities |  | 10,520 |  | 9,215
Net deferred tax asset | $ | 7,903 | $ | 6,333
In March 2014, the New York legislature approved changes in the state tax law that was phased-in over two years, beginning in 2015. The primary changes that impacted the Company included the repeal of the Article 32 franchise tax on banking corporations ("Article 32A") for 2015, expanded nexus standards for 2015 and a reduction in the corporate tax rate for 2016. The repeal of Article 32A and the expanded nexus standards lowered our taxable income apportioned to New York in 2016 and 2015 compared to 2014. In addition, the New York state income tax rate was reduced from 7.1% to 6.5% in 2016. Based upon the Company's historical and projected future levels of pre-tax and taxable income, the scheduled reversals of taxable temporary differences to offset future deductible amounts, and prudent and feasible tax planning strategies, management believes it is more likely than not that the deferred tax assets will be realized. As such, no valuation allowance has been recorded as of December 31, 2016 or 2015. The Company and its subsidiaries are primarily subject to federal and New York income taxes. The federal income tax years currently open for audits are 2014 through 2016. The New York income tax years currently open for audits are 2013 through 2016. At December 31, 2016, the Company had no federal or New York net operating loss or tax credits carryforwards. The Company's unrecognized tax benefits and changes in unrecognized tax benefits were not significant as of or for the years ended December 31, 2016, 2015 and 2014. There were no material interest or penalties recorded in the income statement in income tax expense for the years ended December 31, 2016, 2015 and 2014. As of December 31, 2016 and 2015, there were no amounts accrued for interest or penalties related to uncertain tax positions.

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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=6907707&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=6907707&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=6907707&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=6907707&loc=d3e32537-109319 + Details
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